What Should be included in Financial Plan

People should make financial plan that is important for them. With the plan, you will know how to reach wealth. You know what you can prepare for to reach wealth. Without planning, we do not know where we go and we must lose in journey. When we go to in a place, we must prepare the map. We can choose the vehicle to go there. For example, you want to go to a place by car, bus or train.
To make the financial plan, you should include some essential or important element. In financial planning you should also include:

Figure your financial self
Check your financial health. Is the asset higher than the liabilities? Can you fulfill your daily necessity and month spending? Some people has high income but they cannot fulfill their spending. They spend too much money than they can generate.
List the entire of your asset. You may have a house that you stay inside. Guess the value of your house in dollar. You can see the price of the house today. Then, add your car as your asset too. Include the stock and precious notes as your asset. Count the market value of your stock or bond. Perhaps, you save some gold bar at the safe deposit box. You should record it as your total asset. Sum your entire asset.
List also the liabilities. You may have credit card debt, lease car, debt to other people. Record when you will settle the debt. Sum of all liabilities list and compare to the assets. If your asset higher than the liabilities, you are wealth. If, on the other hand, the liabilities is higher than the assets, you are not wealth.
Reach the wealth by reducing the liabilities. You can pay the debt soon for it. Do not borrow money again before your financial condition health. The debt cause your financial worst because you should pay it periodically.


The goal
What is the goal of your financial planning. People goal is to reach wealth. However, this goal is not clear. What is the definition of wealth? Each people have meaning. Some people think the wealth is a man whose has so many houses. Others people said that wealth is money.   We should have a clear goal. For example, we want $ 1 Million for next ten year.
The goals should be attainable. Consider the asset and your net worth. If your net worth is small, you should not set the goal too high so you cannot reach the goal. Calculate the money that you can get in specific time. We should be optimistic but we should able to calculate our ability.
The goal is also realistic. The employee should not set the goal to travel around the world. A common employee should think to reach wealth not leisure. They can set the goal to one place only where they dream to go there.

The budget
Budgeting is very important in financial planning. This tool can help you to reach the goal by the net worth that you have. A budget describe how much income comes to you and how much spending go out from you. Therefore, you can manage the money well.
The useful of budget is to earmark some money for the goal either short term goal or long term goal.For example: We want buy playsation next year. We can make the budget for buying the playstation. Earmark $30 per month, so you will collect $360 at the end of the year.
Making budget is not difficult. You can write what you can spend the last month. There are some spending items such as food, cloth, apartment rent, and others.  We have to eat everyday but we do not have to eat the restaurant because it is very expensive. We can cook the food in our kitchen tha is cheap and is also health. 
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Move from financial assets to hard assets

Uncertainty economic makes the investment return is not good. A certified deposit just give 2% interest rate per year that is far from inflation rate. The stock return is also not good in past decades. Some investor who invest for short time does not get the appropriate return.
Being worried by next bubble dotcom that loss some investor money, some clever investor remove their financial asset to hard asset. Hard asset is different with the financial asset because we can hold the asset. Meanwhile, we just hold the paper for financial asset. We have the part of the company by holding some paper.
Some investor change the investment to hard asset. They do not want take a risk with the stock. Some woman buy fashion collection such as famous brand handbags that they can wear it and sell whenever they are bored with it. This is not a profitable investment, however, it is better than investment. Woman also like jewelry especially gold. This shine yellow metal can be made become ring, bracelet, necklace, and ear stud.
The gold is stable and can give you high return but jewelry is little bit different with gold. The fabrication cost is high and most jewelry store will buy cheaply.
Most investor will prefer gold bar that value is very stable. Gold has been increasing recently due the dollar weaks and high inflation. Some investor are worried with uncertainty United States economic that looks not end. The gold bar is liquid and we can sell it at jewelry store, gold store, and others.
Silver may be a good option for hard asset. The silver increases is higher than gold increases. In last this year, silver increases 127%, gold increases to 28% and Palladium increases 58 %. some investors increase the percentage of precious metal in precious metal from 10% to 25%.
The gem stones that people use for it for jewelery is also good for the investment. The polished diamond increases 13% in past twelve month.  You can also invest at other gems such ruby and zamrud (emerland).
However, hard asset is not liquid as stock. There is no stock exchange for the hard asset. Keeping hard asset in house is also risky. That is why people keep the hard asset in safe deposit box that guarantee the assets. The asset owner should pay the cost of storage and insurance around $13,000 for a million hard asset every year.