Financial Planning And Analysis – Golden Key To A Secure Future
Every individual strives for financial freedom. To achieve this goal, one needs to have a financial plan in place. This ensures financial stability and a smooth life. It is said that change is the only constant in life. As we go through the changes in life, the financial plans also need to be reviewed and modified to adapt to the changing situations. Most people are aware of the importance of financial planning and the role it plays in our life.
Change and Analysis:
Life is a series of changes taking place continuously. Very often one has to review the financial plans due to these changes taking place. This does not mean that the original financial plan was a failure. It just needs a bit of adjustments to adapt to the changes. This will keep you on the right track and prevent any major financial problems you may be likely to encounter.
Starting Out:
Financial planning is the beginning of your economic life. You need to analyze the situation and plan accordingly. If you feel that you are capable of analyzing your finances and drawing up a revised plan, then you can do it within a few steps. The first step is to categorize your assets and liabilities. This will help you gauge your net worth. If the net worth is in the negative, then you may have to take certain actions to turn around the negative to a positive net worth. This is a simple analysis of your financial situation and you will need to make the changes to the plan you had in place.
If you are overwhelmed by this activity, you can take the help of a professional financial advisor who will guide you in the matter.
In conclusion, with the help of financial planning and analysis, an individual can get his life back on track. Careful analysis of the situation will help you take a decision to draw up plans for cutting back on expenses and finding ways to augment your income. This will help in repaying debts and finding ways to ensure a smooth and secure future. Without any financial planning and analysis, one is likely to drift away from the goals he or she has set to attain financial freedom. It will be difficult to cope with the financial responsibilities and life in general, without a plan in place.
Watch the video related to financial plan
Analysis and Discussion by Jim Rogers of Rogers Holding (First Word)
Help answer the question about financial plan
Why did Obama freeze pay after he has already given Congress a raise?Is this his financial recovery plan now?
The Dems and Reps. have already said his financial spending plan will not work, so to boast he is doing something he freezes pay after he has already given Congress a raise. What a pathetic coward.
November 13th, 2009 at 3:44 pm
I set up his budget form (modified to our specific bills) on Excel. Now that was about 4 years ago.
Now he has software (about $25) available on his website or subscribe to My Total MOney Makeover section of his website and you can do the budget there (link below). Or Crown Financial (originally started by the late Larry Burkett who Dave gives a lot of credit to) has budgeting forms and online software. (Link below) Crown also has software (last link)
Both would be the best way to stay completely in line with Dave's principles. Both of the on-line subscriptions have free trial periods.
November 13th, 2009 at 4:03 pm
So many things to do, hard to boil it down without more info but…
1. Determine your goal. Can't plan to get there if you don't know where you are going.
2. See where you are so you know what you are dealing with. Look at your bills, spending patterns, debts, assets, etc.
3. Work on your high interest debt. Get rid of credit card bills or any other debt with high interest. If it is going to take some time, try to negotiate lower rates or consolidate into a lower rate.
4. Set up a regular savings plan so you have some emergency funds.
5. Once your credit card / high interest debt is out of the way work on 'bigger debt' like student loans, car loans, etc. If renting do the math and see if an affordable house can save you some money. Make sure to keep up your regular savings plan until you have a few months backup
6. Work on getting house, car, big loans paid off and keep that savings plan going
Also want to make sure to: Check out life insurance for dependents, check out / make a retirement plan, make sure I'm making good daily decisions on my spending.
Just my 2 cents worth.
November 14th, 2009 at 12:02 pm
Most people need a goal to work toward in order to succeed. Even though it may vary significantly, it gives you a figure to strive for, and hopefully exceed. Then when you do exceed it, it's a great feeling that you wouldn't have if you hadn't set the original goal.
November 14th, 2009 at 6:21 pm
Hamilton's idea was for rich people to loan the government money through bonds. In order for those bonds to retain any value (and the people holding them to be able to cash them in later), the government would have to survive. Therefore, those rich people would use their influence to make sure the government succeeded. Common people living hand-to-mouth didn't have extra money to loan out, or influence that would affect the fate of the new government, so they were pretty much left out of this process.
November 15th, 2009 at 8:18 am
There are 2 ways that CFPs might be compensated. On a fee basis, or on a commission basis. If the CFP is not trying to sell you specific investments, $3,500 to $4,500 is probably very reasonable for a fee-only comprehensive plan (Goals, investments, insurance, retirement, and estate planning).
If however you are going to be encouraged to buy particular mutual funds or insurance products, then the planner is probably being compensated by commission. In that case, charging $3,500+ is probably double dipping. The complexity of your financial situation factors into whether the fee on the whole is reasonable. Think in terms of the CFP having professional fees equivalent to those of a CPA or attorney. If professional fees in your part of the country average $200 hourly and the bill ultimately is $4,000, then that translates to about 20 hours of professional services work on the part of the planner.
November 15th, 2009 at 12:03 pm
BusinessPlans.org contains a large library of business plans
http://www.businessplans.org/index.asp
November 15th, 2009 at 8:37 pm
On Medicare you can expect to pay $95 a month for part B, and if you want an insurance supplement expect between $100 and $150 a month with no deductibles or co pays. If HMO around $78 a month with co-pays and deductibles. If you are not 65 plan on about $500 a month for private coverage until you are 65.
November 16th, 2009 at 6:53 am
Blue chip stocks
November 16th, 2009 at 3:10 pm
Your personal financial plan must be based on your personal financial goals. First, determine what goals you want, then write a plan. You could visit your local bank and ask the financial planner at your branch to help you set a financial plan.