Effective financial planning - The basis of financial independence

All of us probably know people who have been on low to medium incomes but amassed considerable wealth. Conversely, many of us would be aware of people who inherited or accumulated wealth in good times only to dissipate it later due to personal mismanagement.

The forces of advertising and social pressure conspire to drive people into high levels of personal debt to fund record levels of new car purchases, holidays, the latest electronic gear, the latest fashions, boats, etc., when in fact the evidence shows that the majority of people are not financially well prepared for economic shocks such as loss of job, long term illness, retirement, etc.

Personal money mismanagement is even starting earlier these days with many teenagers getting into trouble with their parents, and even going bankrupt, by spending a thousand dollars a month or more on mobile phone charges. Using “plastic fantastic” is just too tempting for lots of folk, young and old, who would benefit from greater restraint.

People are thinking more deeply than ever about personal financial planning. Finding the right balance in your personal economic and other values which preserves quality of living and quality of relationships is the key.

If you would like more information on personal financial planning simply follow this link: Enquiries and mention "Personal Financial Planning".

Source: Personal Wealth

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