Financial Planning

The perfect plan for success

When it comes to financial planning, many people think that it is a very complicated and time-consuming process, so it always remains a pending task and is not important.

Financial planning is a process in which norms of expenses, investments and savings are established that allow to cover basic needs, also, it is very necessary to reach financial, personal and professional objectives. This planning is the key to have a peaceful life and a life at the financial limit day by day (a life loaded with debt and financial dreams never reached).

It is commonly believed that financial planning is done solely for the purpose of saving for the purchase of a home, a car and (in some cases) having a small retirement fund. This is why a life plan should be based on a financial plan that establishes control of expenses, discipline of saving and decrease of debt; this requires a continuous process that adapts to each stage of life, income reality, and clear medium and long term objectives.

A financial plan is the route by which our money will reach the desired end.

However, making a personal financial plan is not complicated as it may seem, what it does require is great discipline and commitment to the established objectives.

The first thing you must do is clearly establish the objectives you want to achieve in the medium and long term. Here precision will be the key, each objective must be accompanied by costs, estimated time to reach it and deadline.

After that, it is very important to evaluate in detail and deeply your current economic situation, to put in a balance the total income and the total expenses in order to identify which expenses must be eliminated or decreased to reach the objectives.

Fixed monthly income and extra income if you have it
Monthly home maintenance expenses
Leisure and enjoyment expenses
Outstanding debts

Setting financial goals is important for planning a stable future.

Once all this information has been obtained, the moment arrives to set actions, it is here where the greatest commitment and discipline must exist. Here begins the process of healing of accounts, of eliminating the expenses that are not really necessary, to determine the % of income that will be destined to fulfill the debts, the % of real consumption and the % of savings and investment (this last one is made preferably in smaller amount at the beginning to manage to eradicate the debts).

When you reach the savings stage, it is very important that you remember that the % of savings is not established by what you have "left over" from the income, no, it is in a fixed account as important as the % of expenses for the maintenance of the home.

In all this there are two very important actions: planning for the future and foreseeing economic leaks that will destabilize your financial plan.

What can we plan for the future?

Marriage.
Having children.
Remodeling or repair of goods.
Education fund for children.
Retirement savings plan.
Vacation savings.

In short, what you consider will take a portion of your monthly income after fulfilling the fixed economic commitments.

How do you foresee economic leaks?

The economic escapes appear with accident that makes impossible to continue with the labor life, death, natural disasters, diseases, or robbery.

In these cases having an insurance in which you have been able to invest a portion of money (savings) which has generated an attractive growth and to which you can resort to take a % in your investment (and savings) without minimizing your protection to cover these unexpected leaks of money, is the best choice you can make.

Financial planning (personal and family) is the basis for having a peaceful life with the right strategies and actions to achieve your financial goals.

At Family First Life & Global Financial Management we offer you this safe savings option.