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Tuesday, December 24, 2013

The Financial Planning Process

Financial planning is truly a process of understanding yourself. It is about your wish, your hope, your dream and your willingness to attain your goals.  

To start planning your financial, first you must know where you stand, what is your position and condition. This means we have to jot down our assets, expenses, incomes etc. Those figures will tell us how healthy our financial condition before we move to the next stages.

With fully awareness on our financial condition, we can list down our dream, wish and hope that reflected in financial target. Here, we speak not only numbers but also each other expectation (esp spouse) where understanding of mutual benefit and nice-warm relationship are needed.

Agreed goals are translated into executable plans such as investing, buying assets, starting a business and many other ways. Those action plans are implemented and monitored. These reviews usually are conducted in yearly basis.

 Once an amount of money is sufficient for targeted goals, financial locking (parking) is mandatory in order to avoid loss. If the plan is not meet the targeted amount, there are some action plans that should be taken. Having a map of our financial planning is could not be more important in this situation. Happy Planning everyone!

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