Personal Financial Planning Lesson 1 - Introduction
Financial Planning is a fluid and continuous process that examines at our financial health in totality. In part of the process, we are looking at organizing and planning our income, expense, and savings to achieve our long-term goals. The most common financial goals that people set today include funding their retirement, financing their kid’s college education or event paying down their mortgage. With proper financial planning, we can make it possible to achieve all these goals.
Personal financial planning covers every portion of our financial life, like how we spend, how we invest or even how we protect your money. In a nutshell, it is about money management that goes beyond investing and saving our money. A working financial plan is a dynamic blueprint that allows adjustment to new life situation such as a marriage, a new baby, divorce, remarriage, medical conditions, college decisions, career changes and death.
Reading More = Better Investment Decisions
Although we have far better technology and products than our forefathers could have dreamed of, it is a shame most of our financial decisions are no better off than they are. It is important for us to learn how to harness the power of technology and utilize the information available for greater gains for us and our family.
The financial sector is going through an evolution as we are in a midst of the financial crisis. After the crisis, many new financial theories, thoughts and practices will emerge and many old ones will be abandon. How do we know which concepts should we keep and which one do we throw away?
How To Claim Unemployment Insurance
Unemployment rate has been on the rise world wide because the economy is in a pretty bad shape. With the recession going on, many companies are cutting jobs and holding back new employment until who knows when.
According to the official unemployment data, for every 15 people you know, probably one of them has been through the nasty ordeal of been retrenched last year. Finding work in a bad market is very difficult. It will get worse everyday as more people are being laid off because many more companies are going to downsize or even bankrupt in the coming months. Is there any financial help available if you are unemployed?
Unemployment insurance is actually available for people who are retrenched or unemployed not due to their own fault.
When Market Is Bad, Payoff Your Mortgage
The world economy may be in a bad shape, but that does not mean you should let your finance go into a bad shape too. In this current market condition, it is hard and very unlikely you will find any investment instrument that can yield any positive returns. If you are hording cash because your trust your gut feeling and it tells you that the market has hit rock bottom and you are planning to buy more shares, my advice is - Don’t.
Learn from the 2008 market crash, things can get worst when you least expect it and I call this the “Murphy’s Law of the financial market”.
Well, if you don’t invest your money, you can still generate some returns by stashing your cash in a savings account which yield around 2-3%. If we ignore inflation risk, there is almost zero risk involved in generating this kind of guaranteed return.
Another great way to generate positive return is by paying off your mortgage early. Here are the reasons why.
5 Signs Your Finance Is In A Mess
So, we are facing an economy crisis and very likely this crisis has created havoc to your daily life. Even though the crisis is out there breathing down our neck, some people continue to overindulge and fail to cut down on their expenses. Overspending can put one in a bad debt and mess up both their finances and their life.
To find out whether you are losing your head to this crisis, check out the 5 signs you should watch out.
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