In this new installment I propose to talk about the importance of adequate financial planning. In principle, it is the way to carry out a comprehensive, highly personalized plan that allows us to have a long-term economic and financial project using the resources we have available. What could those Projects be? I’ll talk later.
First of all, it is essential to be very clear about the income and expenses that we have in our daily economy, both monthly and extraordinary, and even consider some income or expenses that occur once a year. This is the starting point to have the healthiest personal economy possible. We cannot base ourselves on how to distribute the money without first planning how we are going to get it, how and when we are going to save and how we are going to build that savings and what purpose we are going to give it. This should be done by anyone regardless of their economic knowledge.
The best time to start is NOW because the most important factor we have to consider is TIME. We think that life is short, but it is not so. During our lives we will go through moments of stability and other moments of uncertainty and that is why we have to be prepared. Having different tools will help us organize ourselves. A fundamental role is the support of a financial advisor, someone who can help you bring your economy, your reality and link them with your purpose. A spreadsheet where we can record our expenses month by month will be the first key to take into account to begin, and this decision is essential to sustain over time because the habit of using it repeatedly will lead us to success.
Once we are clear about our savings capacity, we can only think about long-term planning. If we look at the statistics on life expectancy, men could live to 85 years and women to more than 90. You have to foresee, be able to enjoy the future and what is closest too. From vacations, from changing the car, from planning our children’s education. Nothing we do on a daily basis will be strong enough as the goal we are willing to achieve. Asking ourselves why is essential. And ask yourself different questions to reflect on, such as: What is my personal/family plan? What is the effort I am willing to make to reach that plan?
Saving to take a trip, to buy the first home, for my financial independence, to think about the time of our retirement and inheritance planning, will depend on when we are reading this note. Both in our country and in most countries in the world, the retirement system is collapsed. We can already know what is going to happen to us at that moment… so we will have to take many variables into account. The key will also be the review year after year, the plans for that route or path drawn could deviate, we will have to be attentive and dedicate time to it. We are not used to planning for the long term. It’s a matter of proposing it.
Contact information:
www.marinabarbera.com.ar
WhatsApp: https://api.whatsapp.com/send?phone=5491132102895
IG: Financial_Advisor
by CEDOC