Honest Ranger: The Need for Personal Financial Planning Skill Becoming "Urgent"
08:12 - 03/10/2018
Baghdad - Mawazine News
Physical stability is a dream for many people, be they entrepreneurs or otherwise, but in an unpredictable economy, it is becoming increasingly difficult to plan expenditures and save enough money to create wealth, especially for those who want to start a private business.
The management of free money through financial planning is the process of planning for the future and finding a sum of money to meet the future financial needs, the aim of which is to secure the appropriate amount in time and the right person to achieve its goals and financial goals.
An example of this is savings for several years to make up an adequate amount at retirement, or parents may be aware of the need to make a sum of money to the family in the event of an abomination such as death.
The rich person needs to take measures and measures to preserve his wealth and development according to his needs, abilities and personal characteristics, as well as the ease of transferring this wealth to future generations and not diminishing it either through taxes or subjecting them to specific laws that lead to erosion of wealth.
Financial expert, Sadiq al-Mashat, stresses that the need for personal financial planning skill has become urgent in an era of increasing demands for life in an unprecedented manner.
And on the management of free money, says Mashat, "The need for skill in personal financial planning, has become urgent in an age where the demands of life are increasing in an unprecedented manner."
"This is important for managing financial responsibilities, tracking and rationalizing expenditures, and making sound financial decisions, whether it is spending, saving or investing," he said.
Investment is the art of generating money by making money. Every idea that uses money to generate money is an investment. There are many investment options that are optimal and if they are from small capital.
There are tips from the greatest investors of the era summarized in the beginning in an optimal way by considering that the individual monthly or annual income less than real income by 10%, and spend 90% of his salary on all his needs and obligations, and the remaining small investment in a profitable business to obtain On long-term profits, no matter how much this amount, it is important that the results will be sudden in the long term.
* Personal financial planning
The golden rule in personal financial planning is that the expenditure on housing should not exceed one third of his monthly salary and not more than 10% on entertainment and 40% on the basic needs of food, drink, mobility and education. The rest is part of the investment and part of the emergency response. You may encounter it at any time, of course these ratios can be changed from person to person.
* Setting financial targets
And there are experts who see the need to determine the human financial objectives clearly, and emphasizes that the process of personal financial planning and secure funds to meet future needs requires the identification of clear financial targets, and the financial objectives differ from one person to another, there are those who seek only to secure a future that meets the basic needs of him And his family, and there are those who aspire to become a businessman and owner of wealth.
* Caution from falling into debt
Money experts advise you to avoid borrowing if you do not have to, and do not just borrow to buy some luxuries, like buying a new car, traveling for entertainment, processing or renovating your room, buying a set of home appliances, motorcycle or other excuses that you can not just borrow Mala.
* How to protect yourself from bankruptcy
After mastering your personal financial planning skills and building good financial habits, you will feel that you are finally in control of your life. You will feel it by force and increase your wealth over time. Keep in mind that achieving the highest degree of financial security takes time. The accumulation of wealth takes time and discipline.
The famous billionaire Warren Buffett, the third richest man in the world, advises avoiding money loss as much as possible by not risking it in uncertain risks. One should not sacrifice "something he needs to get something he wants" One in a thousand favor a person.
According to this principle, Buffett was keen to avoid many high-risk investments, despite the promising gains they made, but this strategy has borne fruit in the long term and reflected positively on the size of its gains and wealth. anthy 29/6 n