Personal Financial Planning [Part 1]

Rate this item
(0 votes)

Home Truths

Whether you are tired or not, you will retire or be retired from your job.
Whether you want to or

not, you will grow old & feeble if you live long enough.
Whether you want to or not, your family, relatives and friends will need your financial support.
Whether you like it or not, you will either live under a roof or under the skies; you will eat whatever you have to eat and wear whatever you have to wear.
Whether you like it or not, nobody can love you more than you love yourself. 

What is Personal Financial Planning [PFP]?

A committed interest in managing your financial resources.
Distinguishing between needs and wants.
Making plans for satisfying your needs.
Making provision for times of lack.
Taking charge and responsibility for your finances.
Foregoing current benefits for future benefits.
Investments.

What Does PFP Involve?

Pay yourself first by saving.
Educate yourself.
Think Long Term.
Give reasonably.

PFP Principles Pay Yourself First By Saving

This is indispensable! It is also the most difficult thing to do!
Start with the rule of ten, Save 10% - 20% of your monthly income and work up as your earnings increase.
Set up a Standing Order TODAY!
Open a separate account (Savings or Fixed Deposits)

PFP Principles Educate Yourself!

Read financial pages, read books and articles on financial planning.
Talk to like minded people who inspire and challenge you.
Deepen your skills on the job.
Attend training programmes.
Acquire new skills.
Acquire new academic and professional qualifications.

PFP Principles Think Long Term

Raise financially responsible children.
Teach them early to learn to save and manage wealth.
Don't over protect your children from the valuable experience of lack - Raise them so they can compete and survive.
Make investments for them in their names from an early age.
Invest in the improvement of your children (and your spouse) educationally and professionally.

PFP Principles Give Reasonably

Give a Portion of your earnings to God (tithes etc.). The scriptures says there is blessing in giving.
Set aside an amount as a monthly charity budget and ensure you stick to it.
In Personal Financial Planning, where friends and relatives are involved, always practice restraint give reasonably.
Be careful when giving. You have a responsibility to your family as well.

Ponder This?
Of 100 people who started working at age 25, by the time they were 63 years old:

    63% were dependent on their off springs, relatives, friends or charities.
    29% were dead.
    3% were still working.
    4% had accumulated adequate capital for retirement.
    Only 1% was truly wealthy.
    It is not how much you earn that matters but how much you can save and invest.

Written by Linda Diokpa
Follow on twitter @diokpalinda
More articles at http://lindadiokpa.blogspot.com

Read 509 times Last modified on Monday, 04 May 2015 04:41
Linda Diokpa

She is a Mass Communicator, Administrator and Blogger. She has over 17 years work experience that cuts across Administration and Directorate. Her blog is http://www.lindadiokpa.blogspot.com and you can follow her on Twitter @diokpalinda and Facebook: Linda Diokpa .

Leave a comment

Make sure you enter the (*) required information where indicated. HTML code is not allowed.