Financial Planning

By Cole Klauser

Create a budget for your self

The purpose of creating a budget is to plan your spending and saving, given your income level, so that you can meet your needs and wants.

creating a budget have four steps.

1. Determine your net worth - Do you have money in the bank?, Do you owe people money? etc.

2. Establishing your income - How much money do you make? Job,allowance, or other source.

3. Identifying your expenses - How much money you spend a month, car payment, car insurance, house hold expenses.

4. Consider the impact of taxes - money owed to the government on earned income, may also impact your budget.

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Manage your liquid Assets

You need to lean how to manage your liquid assets. liquid assets means that you have enough money. example, you go to the gas station to get a candy bar you get ready to check out and you realize you don't heave enough money. If you would have manage your liquid assets you would of had enough money.
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Manage your borrowing

When you are learning how to manage you borrowing you need to remember to use some of your savings to pay your credit card debt. If you owe more in interest on your credit cards than what you are earning in interest in your savings account, you may want to put some of your savings to better use by paying down your credit card and reducing high-interest debt.

Plan to have enough insurance to protect your assets

You need to have car insurance, what happens if your car gets stolen and you don't have insurance on it? You are out of all the money you spent on purchasing it. You should have insurance on your house, if your house gets broken into and they steel all of your jewelry and money or anything else that you have in your house that could be worth some money. I think that it would be dumb on you part to not have insurance on your assets.
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Develop a plan for investing

You need to accumulate some funds for liquidity to meet day to day expenses and to pay for sudden unexpected events. Any other funds should not be kept around the house they need to be invested. They could be invested in stocks, bonds, mutual funds, and real estate

Develop a plan for retirement

Most people that retire early had planned to retire. They had more then likely had been planning or saving for retirement, Which is never a bad thing cause they won't have to worry about not having money cause they had been saving. I know many people that have retired early, and they were able to because they had planned for retirement
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