Read these 3 Personal Finance Tips tips to make your life smarter, better, faster and wiser. Each tip is approved by our Editors and created by expert writers so great we call them Gurus. LifeTips is the place to go when you need to know about Financial Planning tips and hundreds of other topics.
Many people do not realize how important personal financial planning is. No one can predict what will happen in their future. There are times when people are laid off, fired, or sometimes an accident occurs that makes it impossible for them to work. Whenever something happens in our lives that affects us financially it can cause great stress. Being financially prepared will lead to a less stressful life even if nothing detrimental happens to your financial situation.
Making sure to take the time to do personal financial planning can help you to be prepared no matter what life throws at you. It is highly recommended that someone save enough money to be able to support themselves for three months if they lost their job. This money does not have to be saved immediately. It is smart set aside a little bit of money every month to make sure that you can build the amount of money that is in your savings account. Being prepared just in case anything happens can help you to avoid getting into debt. There is a lot of financial planning software available that can help to make sure that you have the best personal financial planning possible.
Vacations are supposed to be relaxing and relieve the stress built up from work or daily family life. But overspending on vacations can unintentionally build up stress levels. You don't have to break your bank account to have a good time. Check out these two tips that can make you enjoy your trip with a little extra cash leftover to spend on the souvenirs.
Tip #1: Avoid Convenience Stores By Packing Snacks
Long road trips will make tummies grumble for the entire family. However, it can become expensive to continually stop at roadside restaurants to eat, and grabbing a bite at convenience stores can cost more than a full tank of gas nowadays. Instead, pack snacks in a cooler. This way, you know your family will eat the food, and you won't spend cash on junk food that is only good at expanding waistlines while decreasing bank accounts.
Tip #2: Budget It Out
It can seem harder than it looks. But a workable budget will let you keep the overspending to a minimum. Look for vacation package deals and off-season sales at resorts to keep a bit more money in your pocket. A realistic budget will let you enjoy your vacation more.
Flexibility is a master key for successful personal financial planning. An important quality to look for when selecting a personal financial advisor is to find a coach who will allow you to retain flexibility in your financial planning.
Flexible personal financial planning is better than having your asset bank tied up so tight it is inaccessible in case of an emergency. Think of it as having a “Plan B” to complement your ongoing “Plan A” financial map. Financial planning will have many goals, depending on each person’s individual circumstances, income and needs. Strong planning for the long term is advisable, but there should always be an “out” available for emergencies. The only other option for emergency expenditures would be to borrow cash and pay interest rates for that convenience.
Step one in flexible personal financial planning is to know what your total asset value is. Step two is goal setting to establish your ideal end point for all this planning. In step three, you and/or your personal financial advisor determines what plan will be most effective in reaching those goals. Step four is putting that plan into action by executing the plan.
The most important step, and the step where flexibility counts, is constant monitoring of the plan and making reassessments or adjustments when needed should an emergency occur.
|Jennifer Mathes, Ph.D.|