According to Wikipedia.org: Personal finance is a monetary decision that applies financial principles to individuals or household units. It involves the way individuals or families get, budget, save and spend money over time, taking into account various financial risks and future life events. Components of personal finance may include checks and savings accounts, credit and consumer loans, stock market investments, retirement plans, social security benefits, insurance policies and income tax management.
With the financial crisis in today's world, you'd better be responsible for your own income and expenses. There are many courses to help you plan your personal finances, but first let me tell you what it needs. This will guide you through the selection of the course you want to choose.
The basic elements of personal finance are:
Any personal finance course that you decide to attend must have a detailed course in financial assessment. This is an important aspect of personal wealth management. You need to understand your personal finances to manage it effectively. In your own way, you can access your situation by combining a simplified version of your financial balance sheet and income statement. Your financial balance sheet should list the value of your personal assets, such as cars, homes, clothing, stocks, bank accounts, and your personal responsibilities, such as credit card debt, bank loans, and mortgages. On the other hand, the personal income statement lists your resource sources and resources. This is what we call personal income. It also contains what we call personal expenses. This is all your income.
Goal setting: Setting financial goals will help guide your financial planning, and any course you choose should help you understand the skills you need to effectively implement this goal. Everyone faces an arduous financial task. We can rule out extremely wealthy, but almost everyone does it, believe me. You may have enough money to retire, raise enough money for your child's education, or free yourself from the huge debts that have occurred over the years. Set the financial goals you want to achieve and spend time focusing on completing them.
Your goal can be to retire after providing your company with 30 years of effective selfless service, with a personal net worth of $1,500,000 "and" buying farmland, buying a home or building a factory within 2 years, paying a monthly mortgage service fee, ie no more than 35% of total income ". It is usually best to have some goals that are similar in the short and long term.
Financial Planning: This is the next step in each financial planning course after goal setting. It is a major component of the financial planning curriculum. In the broadest sense, financial planning is a commendable effort to manage all of his personal or family finances. Of course, this will start with planning household spending and extend to insurance, taxation, investment and retirement, and estate planning. Financial planning provides detailed information on how you want to achieve your goals. It involves assessing your current net financial value, which is what you do minus the arrears. This gives you the rest. A list that has been completed before you have reviewed your expenses, and don't forget to include taxes, insurance. Earn how much to earn to reach your target spend, then see what you can cut to balance your income and expenses.
Execution: This is the hardest part, because it's easy to say all but these. Even if any good course should teach you what can help you reduce the temptation to not execute your financial plan just to do most of the work. Implementing a personal financial plan often requires discipline and perseverance. Many people attend courses taught by professionals such as accountants, financial planners, investment consultants and lawyers, or if they close friends or family members, ask for their help.
Assessment and Control: Your financial plan must be evaluated and updated from time to time. For example, an increased source of income should be immediately reflected in your financial plan. Any financial course must teach you how to make this update and assessment. You must always monitor your financial plan to check for possible adjustments or reassessments.
There are many free and paid personal finance courses online. You only need to remember the above points. Google can also help. Interesting plan.
Orignal From: Personal finance course
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