If you look at the title of this post, you will probably wonder what financial planning for American gangster all about? You are absolutely right, financial planning is not only for American gangster, it’s for every human being on the earth, whether you are rich, poor, educated and non-educated.
So do you know what’s the hardest thing about managing your money? Making decision to do it. Huh? Well, life and especially your financial one, comes down to nohting more than making decisions.
Take a moment and think about all the choices you make on daily basis - what to wear to work, have what breakfast, lunch and dinner for today, what movies to go for tonight. Now think about all the “money” decisions you make. Don’t believe me? Think again.
Everything you do in life involves your wallet - money. There’s a cost to living, and that why financial planning is crucial here.
So here are the ways to show you how to get started in creating your own personal financial plan without talking about money at all! Sound amazing?
- Begin without even thinking about money - Instead, it has to do with you and how you make decisions.I have highlighted many times that being successful in life is really the result of making good decisions, and making good financial decisions is based on a long term focus, That’s it.
- Excuse me!- We all make excuses to get out of managing our money (no time, no extra cash, retirement is far away). One big reason we avoid planning is because of fear. Many of us think that if we take a bare bones look at our finances, we all have to accept that we’re in debt! Others simply thinking managing money is BORING! So put this in your personal goals and declare to the world that you are going to make a plan.
- Think like Warren Buffett, act like George Soros - Everyone knew that Buffett is the wise investor, strategic thinker which always think ahead, so financial planning is also talking about setting our mindset in 5 years time frame. George Soros famous of act, and act fast! Similarly, financial planning is all about execution, execution and execution. Without any action is just a dream.
- Start reading financial related books and magazines
- Understand 4 qua drum : Assets, liabilities, spending and investing
- Be part of daily routine to update actual spending
- Analyze where your money go and source of funds on monthly basis
- Identify your spending in 3 broad categories, fixed, committed and discretionary expenses items and start to manage the categories in this manner.
2 responses so far ↓
1 hank // Nov 28, 2007 at 2:36 pm
First time on the site (stumbled) - but like the post, especially #2 - it’s totally true. Managing money IS boring to 98% of the population, but it’s a needed part of life in growing up anymore - we really need a financial education in schools to show the pros to it! Nice post…
2 J.W // Dec 16, 2007 at 5:41 pm
Thanks for dropping by and I’m glad you find this post helpful.
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