ipl-logo

Chapter 7: Making An Effective Financial Plan

592 Words3 Pages

Chapter 7: Making an effective financial plan
Once you get in tune with your financial goals, you need to make a plan that is equally effective. Long term financial planning can help you achieve your long term goals and at the same time focus and complete your short term goals in the process.
It can have a huge effect on the major decisions you make and hence plays a very important role in setting the direction of your life. Financial plan varies from person to person and you can take help from a professional financial planner to help you make further plans, especially when you have reached the point where you are ready to start making investment. A financial plan helps you make the best decisions and work towards the betterment of your financial health and security.
Creating an effective financial plan revolves around …show more content…

It puts you in charge of your finances. It helps you decide where, how and why each penny should be spent. It helps you put in sync with you spending habits and thus helps you come up with a realistic plan to meet your ultimate financial goals. In fact, creating a workable budget is the base and the key to your financial success. If you manage to create a good budget, the path to each financial level will become clear to you. So, it is best to create a monthly and yearly budget to have the most effective results.

2. Getting out of your debt

The next step towards successful wealth management is to eliminate your debt. You must be disciplined in order to get out of the debt. Moreover, it is important because there is no point in investing money when you are still stuck in the circle of paying higher interests to those whom you owe money. Doing so will only increase your burden. So, it is best to stay disciplined, cut your expenses and increase your earnings (especially if you have a lot of debt) to get rid of the debt as soon as possible.

3. Building emergency

Show More
Related

East Carolina Budget Case Study

1086 Words | 5 Pages

Several compelling reasons that the university should prepare and manage their budget are because they must be prepared for the amount of students they accept versus the actual students that enroll. In addition, this leads to the other reason being once they are enrolled that all the departments of the students desired major are properly funded, for the students education. Positive financial outcomes for East Carolina University or any university is that if they do practice effective budgeting, than they will be able to retain more students. By retaining more students,

Read More

Financial Literacy In With The Three R's By Tara Siegal Benard

265 Words | 2 Pages

There are many different opinions concerning whether students should be required to take a financial literacy class before graduating or not. In the short story, “Working Financial Literacy in With the Three R’s,” by Tara Siegal Benard, the author suggest teens can’t make big financial decisions when they aren’t educated about it. Students should be required to take a financial literacy class. To begin with, it’s obvious that Americans need help with managing their money. People need knowledge on saving and spending money.

Read More

The Automatic Millionaire Summary

1040 Words | 5 Pages

Bach explains that if one already has obtained debt the first thing that needs to be done is to stop using credit cards. It is really hard to pay off debt if one keeps adding more to the debt. One can also use the “pay yourself” method and one pays 50 percent to themselves and the other 50 percent goes to paying off the debt. By doing this one can get out of debt faster.

Read More

Summary Of Total Money Makeover By Dave Ramsey

523 Words | 3 Pages

All you need is a detailed plan, one vetted by someone with the expertise and experience to guide you through. Ramsey’s Total Money Makeover is such a plan and has helped thousands of people pay off millions of dollars of debt, save for retirement, and live a life of freedom that only those with real financial independence can hope to experience. He begins by outlining various myths that tend to hold people back and keep them mired in a cycle of debt. He then shows readers how to build an emergency savings fund. Next, he guides participants through the steps required to methodically eliminate their debts.

Read More

Financial Planning Case Study Alzheimer's

571 Words | 3 Pages

Per the Alzheimer’s Association, “Up to 5% of the more that 5 million American’s with Alzheimer’s have younger –onset” Alzheimer’s. It is imperative that financial planning be done soon after diagnosis. Decisions should be made while the person is able to understand the many facets of the financial planning process. The first step is to make sure all the important financial information is in one place and to share with someone you trust where these documents are located.

Read More

Cause And Effect Essay On Student Debt

442 Words | 2 Pages

Then, consider you income and create a budget that incorporates, as warranted, asset use, to minimize expenses and student loans. You do not need to accept all loans offered. Only accept enough to cover expenses not covered by family, existing usable assets or scholarships. • Learn finance basics: Study the fundamentals of savings and investing including budgeting, stocks, bonds, mutual funds, 401(k)s, IRAs, and the principles of asset

Read More

Summary Of Financial Peace Revisited

648 Words | 3 Pages

Dave Ramsey’s book, Financial Peace Revisited, gave plenty of insight into have to better stewardship over finances. There were several enlightening aspects of this book. The covers information on saving, creating a budget, tips on getting out of debt, financial investments, paying off a mortgage and giving to worthy causes. In this paper, each aspect listed above will be discussed. Saving

Read More

Thronburg Family: Personal Narrative Analysis

1627 Words | 7 Pages

In the beginning, a new life was started for the Thronburg family. Our motto: “plan, plan, plan” was developed. “Plan, plan, plan” means to create a plan for anything that you wish to go well. Trips, parties, and even holidays need to be well planned. When I plan things such as pool parties, Thanksgiving holidays, or vacation trips, I often find myself needing to plan, plan, and plan again, because life gets in the way and I have almost no short term memory.

Read More

Why College Is Important To Me Essay

563 Words | 3 Pages

I plan to master the skill of budgeting. Tuition, books, housing, utilities, and food is a very costly aspect of college life. Being able to master a budget throughout my college years is a skill that I will be able to use throughout life. Independence is also a skill that I plan to gain. While living on campus, I will be away from my home and family, which will force me to find out things on my own.

Read More

The Total Money Makeover: Book Review

930 Words | 4 Pages

The debt snowball that you created should now be directed towards more expensive items like a new car that could be paid completely in cash or a down payment on a house. Once a person has reached this level in the plan, you now have a firm foundation which you can build upon. Baby Step 7: Build Wealth Dave offers suggestions on how to build up your wealth by completing three small steps. These three steps are to start paying for your retirement, paying for kid’s college education, and lastly paying off your home mortgage.

Read More

Assignment: Personal Finance: Alice Goals

1162 Words | 5 Pages

Personal Finance: Alice Goals Complete the Assignment: Personal Finance by Rachel Siegel and Carol Yacht (2009); Page 23. Exercise 2. See below: “Use the S.M.A.R.T. planning model and information in this section to evaluate Alice’s goals (below). a. pay off student loan b. buy a house and save for children’s education c. accumulate assets d. retire e. travel around the world in a sailboat. Discuss your evaluations" (p.23).

Read More

How To Become A Successful Entrepreneur Essay

891 Words | 4 Pages

Accordingly Proper planning is one of the foremost factors for any entrepreneur to employ. Without an appropriate strategy, nothing can be achieved. Entrepreneurs who want to succeed should have a simple but effective realizable plan. A good planning plus sticking to it will be really an admirable act that any entrepreneur should do and succeed. 3.

Read More

Saving Money Essay: How To Save Your Money

1029 Words | 5 Pages

The first step to take before jumping into the process of saving your money is setting your saving goal. If you have something

Read More

Essay On Importance Of Financial Management

812 Words | 4 Pages

• Accomplishment of funds Financial management involves the accomplishment of required fund to the business organization. Accomplishing needed funds play a major part of the financial management in an organization which involve possible source of finance at minimum cost. • Proper Use of Funds Financial management systems help to proper use and allocation of funds which leads to improve the operational activity of the business organization. If the funds use properly, so it helps to reduce the cost of capital and maximizing the value of the firm. • Financial

Read More

Reflection About Investment

856 Words | 4 Pages

What money can do for you is what is really important. Money gives you freedom and choices. What I learned from my investment classes is that investing is important. If you keep your money in your back pocket instead of investing it, your money doesn't work for you and you will never have more money than what you save.

Read More

More about Chapter 7: Making An Effective Financial Plan

Related Topics

Open Document