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Personal Financial Plan | A Wealth Creation RoadMap For Designing The Lifestyle you want

personal financial plan

I guess you desire to have a good life. But do you have a financial plan ('roadmap') that will guide and enable you to achieve what you desire?

Building wealth without a plan is like driving across the country without a map. You’ll eventually get somewhere, but it won’t be where you want, and you won’t arrive by the most efficient route. - Todd R. Tresidder

There are countless examples in real life where important things were accomplished through plans.

Look at the building you are in and if you are not in a building, you can still see one from where you are unless you are seated in the middle of a desert somewhere. How do you think the building came about?...Someone thought of it (the design of a building they wanted), drew the building plan (put it on paper) and then the building was built (action was taken). Isn't it?

What about the beautiful cities you have visited. Do you think they just happened to be beautiful by chance? NO!! A group of city planners sat down and thought of it, put it on a paper and the city was built.

Have you attended a wedding? Or you had one? How did it come to pass? You envisioned it, wrote down details on paper, set things in motion and finally the wedding came to pass as you envisioned it. Isn't it?

I can go on and on with examples but one common denominator in all these is that there was a desiring, formulation of a plan to achieve the desire, and puting the plan into action. Nothing happened by accident like the Big Bang Theory. There was a plan.

Why You Too Need A Plan

What kind of a lifestyle do you want to live? Or you are drifting through life without a clue of what you really want? If you would like to live beyond the 'hand to mouth' life, then you need a personal financial plan that will take you there. Or did you think you will one day sleep and wake up there? Sorry! You've got to desire it, formulate a plan to achieve it and execute the plan.

Being clear of what you really want can be a daunting task to many people. But once you are clear about your desires, then a plan will help you concentrate/focus your energies and financial resources on achieving them.

The reason most people never reach their goals is that they don’t define them, or ever seriously consider them as believable or achievable. Winners can tell you where they are going, what they plan to do along the way, and who will be sharing the adventure with them. - Denis Watley

Types Of Financial Plans

Choosing the lifestyle you want to live is a personal choice. In Rich Dad's Guide To Investing, Robert Kiyosaki points three financial core value choices that you have to choose: to be secure, to be comfortable and to be rich. Each choice has a different plan.

However, for the purpose of simplicity, will consolidate them into two main financial plans that you can prepare and execute to be either secure, comfortable or rich:

1. Financial Security Plan

What's financial security? According to wikipedia, it is the condition of having stable income or other resources to support a standard of living now and in the foreseeable future. In other words, it means to be in a state where your income is sufficient to cover basic necessities (food, housing and clothing) and comforts. So, if you want to be secure, you need a plan that will enable you achieve financial security. A financial plan to be comfortable, can be an improvement of the financial security plan.

2. Financial Freedom (Independence) Plan

What's financial freedom or independence? According to wikipedia, it is the state of having sufficient personal wealth to live indefinitely without having to work actively for basic necessities. In other words, it means to be in a state where your assets generate income that is greater than your expenses. Do you want to be rich (wealthy)? Then develop and implement a financial freedom plan.

The choice between finanical security and financial freedom is not mutually exclusive but more a matter of time. When you seek for financial freedom, you need to have a financial plan for security  in place since financial freedom is a long-term goal.

In order for your financial plan to be successful, it must be unique to you and an expression of your life. The plan must be based on your unique values, skills, interests, goals, and resources in order to work and produce your desired results.

What's keeping you from pursuing financial security and freedom?

  1. You have not set your heart to it

    Can you honestly say you have set your mind and heart to achieving financial security and freedom? What you have no burning desire for, you can't commit yourself to pursue and achieve.

    The starting point of all achievement is desire. Keep this constantly in mind. Weak desires bring weak results, just as a small amount of fire makes a small amount of heat. - Napoleon Hill

  2. You've convinced yourself it's impossible

    You can not embark on and succeed in something that you have already concluded to be impossible. If attaining financial success is a pipe dream for you, then you can't have the motivation to even start the journey. Having a negative mindset is the worst obstable to any achievement.

    There are no limitations to the mind except those we acknowledge. Whatever the mind of man can conceive and believe, it can achieve. - Napoleon Hill

  3. You've settled for the "normal"

    What’s the “normal”? Waking up very early in the morning, putting up together some breakfast in haste or heading to the restaurant for a cup of tea or coffee, dropping kids at school, fighting traffic jams to get to a 8 to 5 job, taking lunch break, chatting with friends on the social media sites, sitting in traffic jam again in the evenings, doing some grocery shopping or taking some few drinks with friends after work, doing some cooking, cleaning, barely saving for retirement.....

    What’s wrong with that? If you are contented with that, then NOTHING IS WRONG! But which is better? Enjoying financial security and freedom or getting stuck in the “normal” boring routine. Since you’ve settled for the “normal”, you have no motivation to seek for financial security and freedom.

    “The minute you settle for less than you deserve, you get even less than you settled for.” - Maureen Dowd

  4. You have little financial intelligence to match the challenge

    I know you are not completely dumb about financial stuff but the thought of pursuing financial security and freedom paralyzes you completely. You feel inadequate to face the challenge. Increase your financial intelligence and you will see your confidence coming up to undertake the challenge.

    "The rich know that it is financial intelligence, not money, that ultimately makes you rich." - Robert Kiyosaki

There is one quality which one must possess to win, and that is definiteness of purpose, the knowledge of what one wants, and a burning desire to possess it. - Napoleon Hill

Now, which among the four does apply most to you? Are you ready to design your desired lifestyle by setting up a personal financial plan?

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