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Financial Planning Center |
Finances
Budgeting Intro
Budgeting is the systematic allocation of ones limited resources (income) to a potentially unlimited number of needs and wants (expenses.) Budgeting your income, though oftentimes tedious and difficult to maintain, can help you better control how your income is being spent.
Some form of budgeting is a necessity if you hope to meet long-term financial goals.
Life Cycle Planning
Unfortunately, very few of us feel prepared to meet our ongoing financial obligations and objectives. Because our lives and goals are so different, there is no turn-key solution for managing one's finances and meeting financial goals. We can, however, identify several steps successful people take in planning for and meeting their financial goals -- a hierarchy of concerns that we each face as our life progresses. We call these steps "Life Cycle Planning."
Time Value Of Money
One well-known fact of economic life is that a dollar received today is worth more than a dollar received a year from now. The relationship between time and money provides the foundation for virtually every financial decision you will make. Whether you are saving money for a future event or considering a loan to pay for a current financial need, you will be greatly impacted by the time value of money.
Financial Statements
Personal financial statements are the roadmap that guides us from where we are today, to where we want to be tomorrow. They also provide fixed points of reference from which we can measure our progress over time. This process is a critical first step in financial planning. Tracking your financial position and progress gives you a great feeling of control -- you know where you are going financially. It helps you to make wise decisions about financial matters.
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