What Is Personal Financial Planning?

The plan is to build a clear and organized business to achieve a goal. Planning your finances is the process of identifying targets for the management of asset and liability flows of money in the medium and long term, and implementing appropriate steps to achieve them, with due professional advice. Put simply, we start to assess where we are today (economically speaking, assets, liabilities, revenues and expenses), where we are going, and what is more important, where it is heading and how we will. In Personal Financial Planning, everything revolves around the person and their wants and needs, not including business plans. It is a process that develops over time, with appropriate modifications as conditions change and the environment.

This process will identify the goals and are designed according to a set amount and a time to reach them (How much money do I need and how long you get). Gives professional advice and objective external view of the development plan, provides their experience and knowledge of the market favoring the interest of the client on their own. The contribution of vocational training is very important, considering that the money brings with it many emotions, which may adversely affect the achievement of objectives. Today we can say that all individuals and families, regardless of their socioeconomic status, need a financial plan. Social and labor mobility is much higher, a person throughout his life can change several times from work or even career. It is also possible that those who now owns a business at some point be looking for a job as an employee, and perhaps once again be independent. Social security systems today are overwhelmed, which makes each one should provide for their needs for retirement, this period is being expanded because of the increased life expectancy. The modules that comprise a Personal Financial Plan are: cash flow (all income – all expenses)

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| September 8th, 2017 | Posted in General |

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