Personal Finance Planning
It takes some rigid personal finance planning if you are going to have enough money to do the things you think you want to do when you think about your retirement years. You first have to start your personal finance planning by setting a budget and determining what your savings priorities are.
In your personal finance planning, you will be able to see what all of your debts are by listing them in your monthly budget that your grandfather taught you to do. Good personal finance planning practices will allow you to methodically reduce your debt ratio to more manageable levels. You find that time is on your side, and as it passes, the debt amounts seem to disappear completely.
Your personal finance planning will also give you the opportunity to decide if you want to rely on stocks, bonds and mutual funds to provide you with enough money to live comfortably on in your retirement years. Your personal finance planning will allow you to learn how to invest in stocks, and how to make your retirement savings accounts grow from the money that you make with these small stock purchases.
You quickly learned that you could live off of some of the income that you received from the bonds that you purchased last year, and using your personal finance planning skills, you planned to save some of it for your retirement The dividends from your stocks and bond purchases might seem a little small at times, but over the years those dividends will double and triple and provide a significant amount of money for you to retire nicely on.
By learning how to manage your checking and savings accounts, you are using your personal finance planning to stay aware of your payment schedules, and make sure that all payments clear and are paid on time. This will develop a good credit history, that might prove useful if you want to borrow money for a retirement home.
In your personal finance planning, you allocated enough money to be withdrawn from your bi-weekly paychecks, to pay for health insurance for the entire family. The money you saved by having such affordable health insurance through your group policy was transferred to the family savings account, and it has caused the savings to grow steadily through the years.
By following a rigid personal finance planning program, you find that you have made a lot of money over the years. With the other money that you made from selling your employee stock options, you have amassed quite a sum to use for your retirement years. Personal finance planning works if you are willing to put in the time and money to make it work, and many people who are retired are glad that they did.
by Nathan.Smarty 19 years ago