Thursday, August 30, 2012

Five Elements Financial Goals

The Financial goals is an essential element in financial planning. The goals should have at least five element or ingredients. Here are the elements:

1. Create wealth
The aim of financial goals is to make the people wealth. They can create wealth with some ways. Most people prefers to work for the boss. They can shows the boss that the company deserve to pay they more. They can choose any company that promise high salary,
Some other prefers to open a business due the business can make more money than working as an employee. Some of them are success in business.
2. Maintenance wealth
If you nave reach the wealth, you have to maintenance it. Manage the money that come from your boss or the business well. The money that come to you or cash inflow should be balance with the cash outflow or spending. List the spending for the next month completely. The spending must be lower than the income so you can invest the money or save the money.  
3. Increase wealth
Our jobs is not finish when we have reach the wealth. You should not satisfy when you just get $ 30,000 a month. You can also increase the money to a hundred of thousands. The employee can ask the boss promotion or the business man can add a new store so they can generate more money. A business man can try other business. Example: They can open a car workshop.
4. Protect wealth
Some people may protect the wealth with insurance. The life insurance can help the family survives. The health insurance can protect from hospital fee that is very big. The sick will not disturb the wealth again.
I prefer asset allocation than the insurance, due it is cheap. In asset allocation, we do not have pay the premium. We alone determine to put the money to various asset. Do not put your money at financial asset only such as stock, bond, mutual fund, derivatives, and other. You can put your money to real asset such as land, property, and else

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