Personal Financial Planning


Personal planning is a crucial part of personal finance that must be carefully done if saving must be available for entrepreneurial investment. I stated on our previous article that if you fail to plan invariably you have planned to fail. This all-important financial planning must be monitored and re-evaluated from time to time to ensure that it does not violate our savings and investment  dream of the future. Bootstrapping is recommended before thinking of taking a loan from the bank for your business.

 Personal financing

 This is the application of the principles of finance to the monetary decisions of an individuals or family unit. It addresses the ways in which individuals obtain, budget, save and spend monetary resources over time, taking into account various financial risks and future events.
Five basic steps involved in financial planning 

 1. Assessment

 A simple income statement and balance sheet can be prepared to assess the personal financial situation of an individual, this shows the amount an individual have, if this will go for the business or not.

 2. Setting goals

 This entails setting a goal for your business which will determine what will be done and needed for the business fulfillment, it is these financial goals that will drive the financial planning of the business into reality.

 3. Creating the plan

 The financial plan will give adequate details about how to execute the goals. It could stress areas that expenditure is to be cut, steps to be taken to increase employment income, and even areas to increase investment so that enough income can be generated to pursue and accomplish the set goals.

 4. Execution

 Planning is nothing until action is taken to accomplish it, implementation of the one's personal financial plan requires high level of discipline and perseverance if it must be attained. Distractions should be avoided and many a time the need to reach for the help of professional accountants, lawyers and financial expert may be considered a worth while option.

 5. Monitoring and reassessment

 Monitoring is essential to ensure that implement is in line with set goals, where aberrations are noticed, immediate corrective measure and adjustments have to be taken to ensure that financial goals are actualized.
Having a personal financial savings is very important for a business growth, have a business  plan, set your goals and the implement it, because without planning you will implement your business idea wrongly, Don't venture into a business without a well strategize plan.

 Hope this will be helpful on your business endeavors, please kindly share with friends and don't forget to subscribe to get prompt notifications on our next article. Thanks

Comments

  1. lawrence fastingAugust 14, 2020 at 7:38 AM

    Ideas, plan, execution = success

    ReplyDelete
  2. paulwindows.August 14, 2020 at 11:21 PM

    Very insightful

    ReplyDelete
  3. IzzyaccessAugust 14, 2020 at 11:23 PM

    Good article here

    ReplyDelete
  4. UnknownSeptember 3, 2020 at 3:19 AM

    Investment Bloom
    This is an example page. It’s different from a blog post because it will stay in one place and will show up in your site navigation (in most themes). Most people start with an About page that introduces them to potential site visitors. It might say something like this: Hi there! I’m a bike messenger.

    ReplyDelete

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