Do you need help analyzing your money? The following is a revised discussion from my previous Consumer and Family Financial Services work in the Forbes School of Business and Technology at Ashford University. This revision is part of my Pre-Consultation Guide and Personal Finance Checklist that helps people complete the Financial Planning Workbook. Those works are available upon request. Here is a summary. The core elements of a financial plan for an individual or household of family members can be summarized in the following seven point analysis. The synopsis only describes distinguished work. It includes the purpose and prerequisites for each section of a comprehensive financial plan.
These are common matters in my financial consulting, planning, and management practice. This is merely a summary of core elements in a financial plan for an individual or household of family members. The synopsis describes only distinguished work. It includes a summary of the purpose and prerequisites for analysis. This revision is part of the Pre-Consultation Guide and Personal Finance Checklist that helps people complete the Financial Planning Workbook. Those works are available upon request. Let me know if you have any questions or concerns about the process. I look forward to helping you in the future!
We know it is important to create and maintain financial statements. The balance sheet lists all assets with liabilities including a worth calculation (assets – liabilities) calculation and the cash flow statement lists all income with expenses including a net cash flow calculation (income – expenses) calculation. Three other important calculations include liquidity ratio (liquid assets/living expenses), debt-to income ratio (debt payments/income), and debt-to-asset ratio (liabilities/assets). Do you have your balance sheet and cash flow statement prepared for last year? Have you updated your financial statements for this year?
Preparing these documents is detailed work. Updating them regularly and continuously is less intensive but does require commitment. Based on cash flow and net worth analysis we can move forward to examine other prerequisites in the financial planning process. For example, we can establish investment goals. Common investment goals include accumulating retirement funds, enhancing income, saving for major expenditures, sheltering income from taxes. After establishing investment goals, we can adopt a written financial or investment plan. Then we can evaluate investment vehicles, select suitable investments, construct a diversified portfolio, and manage the portfolio. These are some of the money matters in my financial consulting, planning, and management practice. If you have any questions or concerns about your personal financial statements, then contact me.