ACHIEVE PERSONAL FINANCIAL SUCCESS !

PLANNING YOUR PERSONAL FINANCE
Despite earning an income of Millions of Dollars in a life time the average individual is always under financial pressure and rarely achieves financial success.this is caused by by lack of knowledge and inability to do personal finance planning.
Financial Planning which means setting up a financial success system embodies assessment of your current financial situation,setting your financial objectives,goals and formulating plans to achieve them.
HOW TO ACHIEVE FINANCIAL SUCCESS
There are three things about money that one needs to know to achieve personal financial success:(1)Making Money(2)Managing Money(3)Multiplying Money.
The skills needed to build this financial success system can be easily acquire by any individual and can be broken into 7 key areas:Income,Expenses,savings,retirement,Tax,Estate and investment.Issues of income management and preservation,networth,risk mgt,insurance and asset mgt are covered in these key areas and understanding them will aid your planning
YOU NEED A PLAN
According to Financial Planning experts,most people do not see the need for personal finance planning.Others are blinded by few achievements which they believe are enough to see them through any money problem.
A good personal finacial plan helps you:
(1)Eliminate your money problems.
(2)Prepare for the unexpected.
(3)Balance your cashflow(income & expenditure)
(4)Add value to economy of your locality.
(5)build solid financial success.
(6)Achieve a happy life.

TIPS TO EFFECTIVE FINANCIAL PLANNING
To plan effectively for financial success,two issues must be adequately taken care of:
(i)Due diligence on your financial state.
(ii)Setting goals in key areas-income,expenses,savings,etc.
ASSESSING YOUR CURRENT FINANCIAL STATE
First thing to do is to ascertain your current networth..YES.whatever you have after subtracting your expenses(liabilities) from your income(assets)thats your networth.
write a list of your assets-things you own that grow their financial value or and generate income eg.Stocks,bonds,tresury bills,mutual funds,real estate land,jewelryetcand their value.
Write out a list of your liabilities-things you have that take money out of your pocket eg.loans,mortgages,auto finance etc and the amount.The difference value of the two list is your NETWORTH.
According to an expert "You should also do a list of your income sources(your job,investment income etc)and expenses.Start with regular expenses that are easy to remember and then go to ad hoc ones.you could also start with the biggest ones and work your way down.The difference between youe income ane expenses is your NET INCOME and the amount that is available for you to save and invest.You must also list out expected or planned expenses for the future,such as your own house,children's school fees,vacation etc.
SETTING YOUR FINANCIAL GOALS
Your financial goal focus should be on the following areas:Income,Expenses,Retirement,Insurance,Inheritance,Savings and Investment.
(i)INCOME GOALS:Look at poossible ways of increasing your current income.A second job,side business,increased work hours,ask for a payraise.Many people succeed in growing their income by at least 50% when they set goals.
(ii)EXPENSES GOALS:Set a ceiling on your expenses.Decide what % of your income to spend on what.Look at areas you can cut costs.The key is to keep it low.
(iii)RETIREMENT GOAL:At what age do you wish to retire and how much income do you require to live happily and comfortably at retirement?
INSURANCE GOALS:How much would your family need to replace your income if you were to stop providing due to death,illness or permanent disability?
INHERITANCE GOALS:How much would you like to leave behind for your dependants if you are to pass on before them?
NOW...MAKE THE PLAN (To be continued..