Basic Mistakes In Financial Planning

The importance and value of personal financial planning you probably already know from our seminars and webinars. Today we offer to talk about the main mistake that people in the process of drawing up such plans.

The first mistake - this is an unrealistic goal. Of course, we all want a lot of things at once: the apartment, but no one, and a new car, and travel four times a year, and children learn in the best universities of the world, and to provide loved ones in full, as well as any does not deny. Dreaming, as they say, not bad! But the goal must be real!

As an example, consider the goal: to accumulate 1 million per year. How real is it? The answer will depend on the resources that man has today. Do you have a salary, which could delay a decent amount every month? Is there a financial reserve to start investing? Do credit obligations and whether the system is organized to generate additional income? ..

Remember! Before you decide on the purpose and its value, it is important to assess the current financial capabilities and financial instruments that you want to use. Competent analysis will help to understand how the real goal you set, and whether you have enough resources to achieve it.

The second mistake - is unrealistic deadlines. Consider the same example: 1 million per year. Now, let's talk. In principle, save 1 million, even with unfavorable financial situation may be, but is it possible to do this year? ..

Having defined the goal, realistically assess possible! Plan a date based on your financial capabilities.

Basic Mistakes In Financial Planning

What happens if the objectives and deadlines are unrealistic? Our brains can not figure out what to do to achieve them. He does not see the strategies and options, are not able to understand the methods of achieving. The goal becomes unattainable, and goes into the category of illusory dreams. No action - no motivation. As a result, we are "spit" on purpose and forget about it. Would you like to forget their purpose? We do not think! Then consider our recommendations.

Many people, when they make a financial plan does not take into account inflation. Do not lay that expenditures and revenues will grow, and this - the third error in planning. If you run one or two years major changes can not see it in five years, inflation will be strongly evident and affect the achievement of objectives. Those funds that you persistently hoarded in many ways, may not be enough for realization of its goals. Therefore, it is necessary in the planning and definition of objectives to take into account the average percentage change in inflation and to reflect this in financial terms.

We already wrote about the importance of assessing the assets and liabilities, and so little attention to the reduction of liabilities is another serious mistake in planning. Actions orderly repayment of credit and debt should be written and implemented. For advice and strategies to get rid of liabilities, as well as augmentation of assets, it is better to turn to a professional financial adviser.

One of the basic principles of financial management is a regular investment, and if you successfully exploited this advice and become an investor, it is required to consider in terms of their income from this cash flow.

Well, the last recommendation - start thinking about securing a comfortable old age for yourself now! Even if you have 20, 30, 40 years and it seems that old age is still very far away, it needs to be concerned about his future. Start to create a "safety cushion".

Today we discussed the basic mistakes in personal financial planning. Using this knowledge, you can create an effective strategy for achieving personal financial freedom and prosperity. For more tips and advice, please contact a professional consultant Agency for International Investment "Rich!"

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How To Start The Path To Financial Success?

With the key financial skills that will make you richer. That is why the Agency for International Investments "rich," has decided to become the general sponsor of All-Russian Olympiad for high school students financial market, which has been held annually since 2008.

Just last Olympics was attended by over 24,350 students from 83 regions of the Russian Federation. Many of the participants have continued their education in the financial sector and is successfully working in the financial market.

Why is this project important? Because, unfortunately, the Russians still know little about how to create sources of income and prefer to take out loans, paying crazy interest.

Meanwhile, bankers do not hide their true goals, as evidenced by the recognition of Chairman of the Board Alla Tsytovich Uniastrum Bank on Banking Forum Adam Smith in London. According to her, the problem of banks that there is a whole category of people who do not want to live on credit. "The question is, how to drive in the credit bondage, that they finally began to take out loans," - she specified.

A senior vice president of BIN Morsin Peter, referring to international experience, added: "As citizens of the retail loans are planning for a year or two, but we are interested in the longer term, for example, ten years, or people transferred their debts from one generation to another ".

Unlike bankers, we offer you to receive interest, and not to pay them. That's why we sponsor the Olympics on the financial market, and we hope that the younger generation will never know what it means to live on credit.

Finally 5 good tips from billionaire Warren Buffett: 

1. Stay away from credit cards.
2. Invest only in yourself and remember that the money does not create man, but man - is the one who created money.
3. Live as easy as possible.
4. Do not chase the brand, wear those things in which you feel comfortable.
5. Manage your life for yourself, it's your life, not someone else's!

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