We seek haven for excess cash that will generate income. In times of need, a number of us take actions that are desperate to boost our money supply to fulfil the day’s demands. Both actions necessitate investment choices, decisions that many of us are neither qualified nor experienced to create without help. Thus, begs the requirement to understand the answers to the four wives why, when, where, who and one husband how queries with regard to investing and financial planning. This guide will discuss the two most to making investments. As a company and financial adviser to companies and a financial planner, I am asked to provide guidance or tips to investment.
Whether I am tipster or an investment guru or not is immaterial as I would avoid answering questions without knowing and understanding the history, standing and financial aims of the questioner. As you can pick a book on the topic in any high street or online bookstore this report is not meant to be a primer in investing or financial planning. I would love to share what I believe to be the two. Planning is an activity we engage in of the time – planning for a vacation, planning for a wedding, or planning for almost any occasion or intending to accomplish a specific objective. The Certified Financial Planner Board of Standards, Inc CFPBSI defines financial planning as the process of meeting your life goals through the proper management of your finances by Small Business Advisors. Life goals are goals to us that we would like see come to pass during our life. Goals can be as easy as saving to buy a car or to get a cruise round the world, or a little more challenging in investing to mitigate the effects of inflation.
It is very important that people be rational and do not set goals that are going to be tricky to accomplish in the timeframe we discard the strategy and could be discouraged. Thus, it is good to follow the intelligent principle, educated in Management 101, which says that our goals should be Specific state, save to buy our specific dream car, Measurable state, save $50,000 to buy a car, Achievable state, plan to buy a car costing a sum we could afford, Realistic as in planning to buy a car rather than a trip to the moon even though it can come true for a few, and Timely state, attainable within a reasonable time period.