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Introduction to Financial Planning
Young People who plan their finances are likely to have more positive choices to make in later life. Financial planning for young people is all about taking charge of their circumstances. For most people, it takes more than luck to get what they want out of life. They have to know what they want and then commit to a plan to meet their goals. Most young people miss out on becoming financially independent because they fail to plan. They may not know what actions to take or they simply procrastinate without knowing the long-term cost of such delays. Young people can successfully manage their money if they have the know-how and the will to set aside some of today's income for the things they will want and need in the future. A financial/investment plan is a prsonal blueprint that helps a person: Live within their income. Identify financial priorities. Allocate funds to meet expenses. Meet financial emergencies. Reduce uncertainty and confrict about financial affairs. Achieve a sense of financial independence and control. Save and invest to reach financial goals. A financial plan is a tool to get what one wants out of life. A financial plan is a roadmap that helps plans a trip to an unfamiliar destination. It is a necessary tool travelers need to arrive successfully at the right destination. Most young people are unfamiliar with how to arrive at financial security....with the road map of a financial/investment plan they can figure out how to get to their destination. A financial plan works best if it is simple, uses realistic income and expense estimates, is reviewed annually (or even more frequently), and adjusted to reflect changing conditions and goals. A common mistake people make is to prepae a financial plan and then fail to follow it or adjust it when neccessary. Throughout the entire financial planning process, you will make decisions about how to distibute your income to meet your most important expenses. These decisions will be influenced by many factors, including personal values, goals, wants, and needs.
Financial Goals
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