Financial Planning

Financial Planning - Your Guide to Financial Freedom

Financial Planning encompasses all areas of our financial well-being.

On the debit side, there are mortgages, loans and credit cards, taxes and the cost of living.

On the credit side, there is income, savings and investments and assets.

The goal of financial planning is to have the credit side outweigh the debit side by as much as possible. Only then is financial freedom at hand.

There are many tools available to you to manage your personal finances, from easy to use software programs, to budgeting, to simply recording your every expenditure to track every cent you spend.

There are ways to save money on taxes and there are ways to reduce your costs of borrowing. There are ways to accelerate yourself out of debt.

Finally, there are ways to save your money and make it work as hard for you as possible so that you have a sound financial future.

The concept is simple: spend less and save more. But it is no less easy to implement in real life than that other simple concept eat less - move more.

One way to start your personal financial plan is to pay yourself first. Take full advantage of tax advantaged plans such as 401-K's, IRA's and Keogh plans. Then set up an automatic investment plan with a decent mutual fund company, so like withholding taxes, the money is gone before you even see it.

Many experts will advise you not to save or invest until you're debt free, but I believe this is unrealistic. It's true that you're unlikely to make the same return on your investments as you would by repaying debt, but it's also true that you are unlikely to pay off your debt soon enough to have any meaningful compounding of the growth of your investments.

A better course, in my opinion, is to refinance credit cards and other high interest debt into a low interest second mortgage. Then destroy the credit cards and never apply for new ones. Use the money you save on interest to start your savings plan.

Of course, things have changed substantially in the last few years. Many asset clases, especially housing, have lost value, sometimes substantially. Many people are now under-water on their mortgages - they owe more than the house is worth.

Unemployment is skyrocketing, while federal and state spending are growing at unstainable rates.

So most people now realize the true hazard of debt - although they may no longer be in a position to do anything about it.

Now is the time to take debt repayment and savings very seriously - not only personally but also that spending being done "on our behalf" by governments on all levels. Hopefully you will find useful ideas to help you address these issues in the following articles.

The power of compounding is tremendous, so the sooner you start investing, the more benefit you will realize. Go to the calculator section and try the compound interest calculator to see what I mean.

It may seem difficult to start saving rather than continue spending, but proper motivation always helps.

For instance, couples with a newborn in Canada could consider starting an RESP, a tax-free savings account that allows you to build a fund for your child’s education.

Growing wealthy will not happen all by itself. Start now and you will be very happy later.

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More Financial Planning Articles

Annuities
If you worried about outliving your money, an annuity may be a good choice.

Asset Protection
Asset protection is an integral part of your financial plan.

Debt Management
Some tips on how to handle your debts wisely.

Estate Planning
Do you have your estate plan yet'

The Financial Planning Follies
How to die broke in one easy lesson.

Financial New Year's Resolutions
Steps to take to get your personal financial life in order - starting now.

Get Rich Slowly

Get Rich Slowly
Ways to amass a small fortune.

401 K Plans
The joy of tax free investing.

Your Budget
Your budget is your road map to financial freedom.

Another Way to Budget
Use state-of-the-art tools to control your spending and reduce your debts.

Health Savings Accounts
Health Savings Accounts are a great way to control the cost and quality of your health care.

Individual Retirement Accounts
Which type of IRA is best for you'

Exchange Traded Funds
Why EFT's are useful investment vehicles.

Index Fund Investing
A great method to get rich slowly.

Saving and Investing
Advice for a young investor.

Stock Certificates
Hang a picture of your investment on the wall.

Financial Professionals

Financial Professionals
Professionals to help you with your financial plans.

Financial Planners

StockBrokers

Insurance Agents and Brokers

Attorneys

Getting Out of Debt
How budgeting methods and careful planning can help you totally eliminate all your debt.

How to Manage a Million
What would you do if you got a million dollars today'

Income
Part One: Types of income.

Make Your Money Work
Part Two: Make your money work harder than you.

The Damage Caused by Inflation
The cause and effect of inflation - how your buying power is eroded.

Insurance

Insurance
Insurance is a vital financial planning tool.

Life Insurance

Health Insurance

Homeowners Insurance

Federal Flood Insurance

Auto Insurance

Long Term Disability Insurance

Umbrella Insurance

Insurance Scoring
How bad insurance scores can cost you a lot of money.

The Reservation of Rights Letter
What to do if you receive a reservation of rights letter from your insurance company.

Paying for College

Paying for College
College is one of the major expenses you and your children will probably ever face. Tips and ideas on how to cover the tuition bills.

College Savings Plans

Financial Aid

Federal Student Loan Programs

Scholarships

Federal Grants

Other Ways to Pay for College

Private Student Loans

Student Loan Repayment Options

Employ Yourself
The best way to be in control of your life is to be self employed.

Some Self Employment Ideas

Affiliate Marketing

Start A Drop Shipping Business

Self Publish Books

Owning a Business
Why everyone should consider owning a business.

SBA - Small Business Administration
How the SBA can help a small business thrive..

Starting a Home Based Business
The internet has made it easier than ever to start a home based business.

Personal Financial Software Review
Easy to use personal financial software programs to help you become debt free.

Plan Your Life
You need a plan to prosper.

Real Estate Investing
Real estate is a good way to diversify your assest and build a second income stream.

Retirement Planning
Things to consider if you're approaching retirement and are still broke.

Funding Your Retirement
If you can start funding your retirement when you are young, you can be quite wealthy in your golden years.

Retirement or College
Given one choice, saving for retirement is more important.

Starting Social Security
Should you wait to begin collecting benefits'

Working in Retirement
Why working after 65 is good for you, both financially and physically.

Don't Check Your Brains at the Border
Use your brains when investing in real estate abroad.

Savings & Investments
Some tips on how to jump start your savings plan.

Sources of Emergency Cash
Getting together money of a disaster strikes.

The Road to Financial Freedom
The road to financial freedom is literally paved with gold.

The Subprime Mortgage Mess
The causes and effects of the subprime mess.

Talk Yourself into Financial Freedom
Take a positive attitude when making financial decisions.

You and Your Taxes

Dealing with the IRS

IRS Enforcement Tools

Offer in Compromise

Taxes and Your Lifestyle
How some simple lifestyle changes can effect your after tax income.

Unsecured Lines of Credit
Unsecured lines of credit can be a useful financial planning tool.

What is True Wealth'
How much money is enough'

Growing and Preserving Wealth'
How to make sure your nest egg outlives you.

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Recommended Site

The Couple's Guide to Love and Money
Information about THE COUPLE'S GUIDE TO LOVE & MONEY, a breakthrough personal finance book by a psychologist. Site includes a free test of your money personality. The Couple's Guide to Love and Money

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