Financial Planning Assessment
Assess your finances
Net worth is Assets minus Liabilities
Plan your financial goals
Envision your future
Risk appetitie
Insurance
Any good health insurance will not be copay , IPD and OPD need to be covered.
Insurance need analysis.
Worst way is agents.
Need analysis to be done - Expenses analysis,
50% for necessitiy
30% for Wants and
20% for savings
Zero based budgeting - strategic approach and evaluation periodically.
Invest
Do not use your credit card for emergency.
Emergency fund is Bank or liquid Mutual fund.
Gold - good investment if cash equivalent.
Money market funds or liquid funds.
3 to 6 months of Emergency funds.
Every 10 years, inflation doubles.
FIRE - Financial Independence Retire Early
Invest - LS
Money like water - three states - solid, liquid, or gas...
Untouched, used or evoprated.
Debt Management
Avalanche - high interest rate loans repaid first.
Snowball - Smallest loan amount first.
Consolidation - All debt, as one big heap and clear periodically through out.
Best way is windfall gains or increase in income is used. Rather than increase the spend.
Cash Surplus Activity -
- Equity
- Debt
- Hybrid
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