In family financial planning, there are a few INDICATORS, to help you gauge your own financial level of success.
Ladies, in particular, will love the tips that I am about to share. 🙂
Well, I am going to share with you a very IMPORTANT discovery.
I am going to share with you on how YOU can determine whether your current boyfriend potential husband, is a person who always got money, or always has that annoying, flickering, ZERO digit in his bank account every month.
You can actually find out if the person got money or not, by asking him to take out his wallet creating his personal statement of cashflows.
A statement of cash flow captures 2 things.
1) Your Cash Inflows
-inflows are all monies received by a person and include gross salaries, rental income, interests and dividends
2) Your Cash Outflows
–outflows are monies that a person has paid out, it can be fixed or variable.
…that have occured over time, normally over the course of a year.
I always create a statement of cashflow for my client when he or she claims, that they dont have the extra money to save.
So, now, how do you create that personal statement of cashflow?
First of all, I will ask his average paycheck (disposable income) he brings home every month and add up to other income if he has any, like dividends, rental income etc. (MONEY COMING IN)
After that, I will segregate his outflow (MONEY GOING OUT) into 2 portions.
1) Fixed Outflow
This refers to expenses that is FIXED, like rental, handphone bill, mortgage loan +++
2) Variable Outflow
This refers to something that FLUNCTUATE, something that he CAN CONTROL.
Example, like cigaratte, holiday expenses, food, +++
I will then take the total inflows and subtract it with his total outflows.
If the balance is positive, he is OKAY.
If it is negative, he has a cashflow problem.
I will then analyse, how they spend their money, and propose recommendations on how to control and reduce their variable outflow.
——————————————————————————————
My accountant friend used to joke that, a naive, uneducated lady will look at a guy’s car to determine whether he is rich or poor.
In contrast, an intelligent lady, will look into his bank account to determine whether he is rich or poor.
Now, I will recommend her, to also create that CASHFLOW STATEMENT for her guy, to determine whether this guy got money or not.
Of course,if love binds everything…girls, do help your boyfriends manage their cashflow to a negative POSITIVE one! 🙂
p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…
I was invited to contribute my thoughts for Personal Finance Blog Carnival.
The question goes…
“What is the single most important lesson you learnt in personal finance?”
Here are my thoughts 🙂
Managing your personal finance is the responsibility of every individual.
Be it, if you are a student, an employee, a business person, a full time investor, EVERYONE, I meant all of us, has the inherent responsibility to manage our finance well.
The most important lesson, I learnt in personal finance, boils down to setting financial goals.
In my capacity as a financial associate in Singapore, I get to talk to lots of people, every single day.
I realise most of them have an insurance plan, have an endowment plan, have an investment linked policy, yet many do not set that OBJECTIVES for having those plans.
When asked, “Why do you get that endowment plan?”
Most will answer, “For savings purpose.”
When pressed for specific objectives, most will retort, “Don’t know. Just savings”.
You need to set your objectives right.
You need to set up your objectives clear.
A soccer player can’t score goals, if he does not know where his goal post is.
An athlete in the Olympics cannot win the game, if he is not clear on the perquisites to winning.
You get life insurance, for your coverage against death, permanent disability and 30 critical illnesses.
You save your money in the bank as a form of contingency funds for emergency use or for your everyday use.
You save your money in endowments, in investment linked products for child’s university education, for your retirement or simply to improve your living standards in the future.
The goal, the time frame and where you money is allocated to; everything is instrumental to your financial success.
Being clear of what exactly you want, and how much exactly you need, will help you in achieving your financial goals.
When setting financial goals, I always share with my clients this simple acronym, simple formula, which I termed as SMART.
Your goal must be Specific, Measurable, Attainable, Realistic and Timely.
1)Specific.
What is your OBJECTIVE of getting that savings plan?
How much money exactly, do you want to accumulate?
2)Measurable
Your goal must be measurable.
If your child is 8 years old, and 10 years later, she wants to go to a local university; do you have at least $84,000 for her 3 years university education?
3)Attainable
When you identify the goals that are important to you, you must find ways to make them come true.
Align yourself with professionals to ATTAIN your goals.
Align with people who already achieved the outcome you want, and learn from them.
4)Realistic
If you have been saving only $100 per month, to save $1000 per month in an endowment plan now, may seems farfetched.
Unrealistic.
Set yourself, a realistic goal.
5)Timely
When exactly do you need, the money that you has saved?
10 years? 15 years? 20 years?
You decide!
So, just remember, setting financial goals are important, and when you set those goals, make sure it is SMART financial goals.
Thank you. We will catch up soon. 🙂
p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…
My friends and I usually have interactive discussions, brainstorming on how each of us, interpret proper financial plannning for our clients.
I extract the terminology of “financial planning”, in the coursebook CFP module 1.
Financial Planning is the process of meeting an individual’s life goals through the proper manageent of his finances, and involves
1) gathering relevant information
2) setting life goals, examining his current financial status
3) coming up with a strategy or plan for how he can meet his goals given his current situation and future plans.
All in all, there are 797 6 steps to the financial planning process.
Establishing and defining the relationship with the client
2) Build Rapport With ClientGathering client data
3) Analysing and Evaluating the client’s financial status 4) Developing and presenting the financial plan recommendations 5) Prepare a 30 page financial reportImplemementing the financial planning recommendations
6) Monitoring
I subscribe to these principles when a client is entrust on me.
There are many modes, ways, a proper financial planning can be conducted, and this is the most accurate way.
This is the status quo.
I will share more with you SOON! 🙂
p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…
Yesterday, we, NTUC Income rookies have a session with our branch manager.
He talked about his experiences, and what profoundly struck me most is the key word, “internalisation”.
I believe 2 things will affect you in life,
1) The book you read
2) The people surrounding you.
We internalise messages from these 2 chief elements and these very messages which assimilate in our heart forms our habits, attitudes and how we run our life.
That is why, I bought and read lots of motivational, self help, financial, wealth management books.
…and I also ensure that people surrounding me are naturally positive.
Btw, talking about internalisation, I found this video…I meant this WONDEFUL video which has subliminal, powerful messages embedded in it.
Enjoy! 🙂
p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…
Running your own company is the fastest way for you to amass a huge amount of money.
…and what product should you sell?
You will need to sell a product which profits for $10,000 to 100 people in order to be a MILLIONAIRE.
You will need to sell a product which profits for $1000 to 1000 people in order to be a MILLIONAIRE.
You will need to sell a product which profits for $100 to 10,000 people in order to be a MILLIONAIRE.
hahah….I am starting to think like a businessman…
kinda interesting ya? 😛
p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…
When I grow up, I want to be a doctor. I want to be a teacher. I want to be an engineer. I want to be an architect. I want to be a lawyer.
My ambitions, my goal is to be someone successful in the future. I will be someone you will be proud of….someone that will take care of you, when I reach my hallmark of achievements.
I will be that doctor that I have always dreamt of….that teacher, that engineer, that architect, that lawyer…..Yes, indeed I will do my very best.
I wont let you down…
I will put a smile on your face.
I promise you.
I assure you that…
I will study VERY hard.
Fight my way through the best university in the world…. (Hold on a minute)
(Do you have enough money to pay for your child’s university education in the future?)
Don’t shatter their dreams by NOT PLANNING.
Call your financial consultant today and PLAN IT immediately!
p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…
A certified financial consultant, Helmi Hakim has won praise for his patience, perseverance and practicality when solving his clients’ financial concerns. For more information on how you can manage your finances better, contact Helmi Hakim at 96520134.
