Financial Planning - Some Great Tips!

Posted on June 26, 2009
Filed Under Finance |

There are a couple of basic steps that we should start with when we are looking at financial planning. Most people seem to think that financial planning is quite a difficult task, in fact,the opposite is true. Some people are a little bit fearful of financial planning because it can be a very emotive issue. If we keep it in perspective ,we can simplify it so it becomes more of a good habit to get into instead of a 'chore' that we must do.

One of the first steps toward a healthy financial future is to look at our outstanding debts, we should look at ways to either pay the debt off quicker or perhaps consolidate all our debts into one easy to manage package.

Another financial planning tip is to put aside at least 10% of our earnings into a savings plan. This sounds a bit mundane,but if we can recall a book called 'The Richest Man In Babylon' by George S Clayson (one of my favorites), we will remember the story of a merchant who became extremely wealthy simply by doing this simple step.

One more thing to consider in our quest for financial freedom is to look at out spending habits. Basically, we should be spending less than we are earning. One of the things that I constantly remind myself is, if I go to purchase anything, am I earning more today than I am spending at this shop? This can sometimes help put things into perspective.

The main key ingredient for any person to become financially independent is to (and here's that dreaded word again) budget. Yes, we need a budget or a plan to guide us. Imagine if we boarded a plane and the pilot announced “I'm not really sure where we will end up today,but it looks like a nice day,lets just fly around awhile and see what happens” , compared to “welcome aboard flight 927,our flight to Sydney airport will take about 1 hour and 32 minutes,so sit back and enjoy the ride”.

What this is telling us is that we should have a basic plan or budget of where we want our finances to be and put a time frame around it also. Believe me, as soon as we set up a basic budget for ourselves, it will be like a huge weight has been lifted off our shoulders. Setting up a financial plan or budget can be a lot easier than we imagine.

There are many simple spreadsheet programs on the market today that will help us in our task. It is simply a matter of spending the time to put in our own data into these spreadsheets and they will calculate automatically what our results will be. In other words, it is an easy method to use to see where our current strategies are taking us.

The best alternative instead of trying to muddle through it ourselves of course is to look for a financial consultant, there is a 'new breed' of financial consultants in the marketplace today who are more dedicated and trained to help us in our quest. Gone are the days when the 'financial consultant' would just try and sell us on one particular course of action.

It is simply a matter of finding one of these true independent lifestyle consultants that can help us.

Murray Beinke is a professional Lifestyle Money Coach, to find out more about how you can benefit from his Money Strategies please visit http://www.themoneycoach.me/

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