Creating Financial Plans

Reboot Your Financial Life

Are your finances drowning you? Here’s how to resurface.

Maybe you took out loans you didn’t need, bought crap on your credit card you can’t afford or delayed saving. You’re not the only one. Time to take action.

Recognition factor. Highlight the positive financial aspects of your life by answering the following questions:

The Big Question: Why?

The most important thing you can ask when setting out a financial plan is: “Why?” For what purpose are you building wealth? The answer is far more crucial than how you acquire assets.

Children have a knack for asking a question that gets to the heart of the matter. You tell them what to do, or how to do it, and they look at you wide-eyed and ask, “Why?”

Your response? “Because I said so.” Yes, your cute little why-machine may be exasperating, but you really did not answer the question. Consider the wisdom behind the why?

What’s Your Net Worth?

Your net worth, representing your assets minus any liabilities or debt, measures your financial health. One of the first steps on your path to workable wealth: Calculate your net worth to give you a starting point to look back on in the future.

Maintaining a positive net worth not only keeps you on a positive financial course; it helps you qualify for loans and more attractive credit terms – saving you a lot of money over the long run.

When crunching numbers for your net worth:

That New Year’s Resolution

Did you make a New Year’s resolution earlier this month? The smartest one is to get your finances in order. Here is a framework for making that resolution stick.

Handling a Big Inheritance

You dream of your long-forgotten rich uncle dying and leaving you a fortune. What if you really do get a lucrative windfall? Realize that it can easily slip away. How do you stop that from happening?

The 1% Savings Secret

Your salary grows every year – presumably – and so should your savings, if even in tiny amounts. Here’s how it all adds up.

Personal finance writing uses 1% a lot lately – either as the figure to annually increase your savings or as the select slice of the population the financially aspiring want to join. Can consistently saving 1% more each year help you gain entry into the top 1% we heard much about over the past few years?

Nobel-Winning Investing

Recently the Nobel Prize committee awarded three economists who have different points of view and who themselves chuckled at their shared winning. Here’s what you can learn from each.

The Questions Advisors Ask

You or your financial advisors rely on many tools to explore and improve your financial situation. Here’s why one of the most critical is curiosity.

Financial planning software abounds for financial planners and individuals. To me, asking questions and the dialog they create might constitute the most important financial planning tool.

When I first speak with you, the prospective client, either in person on the phone, I ask many questions.

Prepping for a Hazy Future

Your future arrives before you know it. But since we can’t predict what it will bring, how do we prepare for it? By making plans and doing that as early as possible. Here are some wise words to help you seize your moment financially:

“By failing to prepare, you are preparing to fail.”Benjamin Franklin.

Need a Planner or a Manager?

If the terms “financial planner” and “investment manager” seem interchangeable to you, know that many people — even financial professionals — goof in differentiating. Understand the difference to maximize your financial well-being, and here’s how.

Confusion reigns because the terms don’t just describe job titles; they refer to distinct parts of the integrated financial processes of financial planning and investment management.


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