Finanacial Plan
Joni Sabin
Plan Your Budgeting and Taxes
- Establish net worth
- Establish your income
- Identify your income
- Considering the impact of taxes
Assets are anything that you OWN
Liabilities are anything that you OWE
Managing Your Liquidity
Liquidity is the ease of which an asset is converted to cash.
Liquid Assets are those assets like your checking and savings account that are on hand to meet your immediate wants and needs.
Money management and credit management decisions are BOTH involved in managing liquidity.
Money Management involves making decisions about how much cash or liquid assets t keep in reserve and how much to invest in less liquid assets, such as real estate.
Credit Management involves making decisions about getting credit and using credit.
A Plan for Your Financing
A Plan to Manage Your Risk
A Plan for Your Investing
Any money/funds you do not spend should be invested so that you benefit with more money.
Common Types of Investments
- Stocks
- Bonds
- Mutual Funds
- Real Estate
Who doesn't want to make more moola without having to work more? I sure do!
A Plan for Retirement
First of all you should start saving early. Planning for this is to determine how much to save for retirement and how to invest that money. There are ways the government can assist you.
Don't you wanna be a happy old person?
A Plan for Communication and Record-Keeping
- Communicate your financial plan to your family.
- Keeping good records of your finances is equally important.
- These records will help you when you file your taxes and calculate your net worth.
- Your heirs may also need these records at some point as well.