Plan Your Finances

The place to discuss and reflect on Personal Finance
A personal financial plan is just a part of our life plan. It's just a tool that helps us achieve those things that matter most.
Of course, we all have many dreams we keep. Buy a new car, ensuring the best education for our children, move to a bigger house, a trip to Europe or have, for many years, a comfortable retirement. But we also know that not all can be achieved simultaneously. For this reason, we must concentrate our efforts on goals that are really important to us. Focusing on the three or top five priorities on our list, but no more. Thus, we have a better chance of achieving what matters most.
How to define our goals and life goals?
Objectives
It is noteworthy that, like everything, if we try to do too much more than we can probably end up not able to achieve any of them.
This is not easy for many people, because sometimes our goals can cause conflict with others. That is, we might want or rather we are convinced that we need to have a car, a new high definition screen or perhaps the new fashion phone - all in the short term. But there are also other things that are longer term, as comfortable retirement, our children go to a good college, or maybe buy a house within a few years.You may not know or can not determine which of these goals is more important to us. If we face a conflict of goals, it is usually better to apply a criterion such as: Which of these goals will benefit us more than the other? What we will do less damage if the differ?
Of course, if we are part of a family should perform this exercise with all its members. Remember that the key to marriage is to share our personal goals and align them toward a common superior. And if we have children, they probably also have something to say about the goals that affect them.
Finally, while drawing our list of goals, we must focus on things that can help us feel financially secure, happy and full. For those that are related and aligned with our deepest values: safety, happiness, love, health, welfare, etc.. Remember that if a target does not contribute to closer to one of our values, then it is only a fad. And if we postpone true objectives and focus to our whims, we will leave more and more of our values ​​and what matters most in life.
Therefore, many of us will at the top of the list things like have a financially comfortable retirement and not be a burden to our children, or establish an emergency fund to make us feel safe, save for a down payment on a house pay our debt, save or secure the education of our children, and so on.
The closer our goals for our values, we will be more engaged with them. It is precisely this commitment that will help us control our spending on important things and expensive. Whenever we have the temptation to buy some high price, we must ask: Which brings me closer to my goals, and therefore my values, or distances me from them? If the answer is no, then let us leave or scheduled for future spending.
Once we have listed our goals, and we prioritized, we must focus on two important things: translate to an amount (to make them specific, measurable) and decide how long we have to achieve them.
In fact, time is one of our most important allies to achieve our goals, as usually the money invested is growing at a compounded interest rate: that is, interest work to our advantage. The more time we have, the greater our chance of success.
If you reread the previous sentence, we find that the weather can also play against us. Precisely because this is very important to start now. The longer we wait, the more difficulty we have.
Finally, in a world like ours, it is important to be prepared for change. Our goals and needs change over time, as well as their priority. Therefore, it is healthy and our family, each year we review our goals and objectives and their priority, to always reflect our current situation, and above all - do not forget - our deepest values.

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