Personal and Family Financial Planning:

Helping Over Million People Move Closer To Their Goal Of True Financial Freedom

“Be a CEO of your Life “Be the master of your money and not a slave. Just a phone call can change your life. It is not what you do for your paychecks but it is what you do with your paychecks that determines your financial status. Ms. Sharon Lechter

It doesn’t matter how much money you earn. It matters how much money you KEEP. If someone makes a million dollars, but they’re drowning in debt payments each month, they’re not necessarily a millionaire. People who make a lot of money just have more room to make bigger mistakes….be wise with what you have, no matter what the amount is.

“MILLIONAIRE” status is determined by a person’s net worth. That’s the value of what they own, minus what they owe. (assets – liabilities).

Personal and Family Financial Planning will address many critical personal financial management topics in order to help you learn prudent habits both while in school and throughout your lifetime.

You will learn how to earn a lot of money. You will learn to create wealth and then start saving. You must create a habit to save money to achieve your financial goal.

The magic of compound interest: Albert Einstein said that compound interest may be one of the most powerful forces in the universe, true story. Let’s kind of look at why this is so important in a little section I like to call, the Time Value of Money. Compound interest refers to the idea that we put money somewhere and the money is going to earn money. So our interest earns interest, and then that interest earns interest. And you can see where this goes, it becomes a very big effect. In fact, mathematically we’re going to see that this is an exponential function. The relationship between present value and future value.

Money Matters: There are a phrase “Honey money talks!”, it’s definitely a true phrase to describe money. Money is the sixth sense without which you can not make complete use of all other senses. Are you aware money is the master and it drives all your activities? Are you aware, that you work for money 10-12 hours a day? Are you aware money keeps your loved ones away from you? Are you aware you have become a slave of money for not less than 10-12 hours a day? Would you like to make money as a servant and become financially free, where money will earn money for you? You will learn step by step where you make your money a servant, where your money will bring money for you and you will become financially free.

Cash Flow And Credit Management: (Smoothing Consumption): It is the cornerstone. That’s the thing we want to begin with. So we’re going to identify a few key things that we want to think about, budgeting for a targeted surplus. That means that we want to make sure that we have the right amount of money left over to preserve liquidity, and that’s basically the idea that we need to have enough money on hand at any given time, to meet our ongoing obligations. Think about how we just defined financial security. Liquidity represents the amount of cash on hand or available cash to us. We want to be efficient in our use of financial services. This means using the right mix of bank accounts, and having the right insurance products, so that we have the protections and the services we need, but, we’re not paying too much for it. And then we also want to think about things like prudent tax planning. Keeping as much of our money as we legally are entitled to do.

Household record keeping. Keeping track of the money going in, the money going out. The things we own and the things we owe, our net worth if you will.  We use that records to estimate our financial position. Borrowing is the idea that I’m taking money from the future, and spending it today. In this pillar you learn:

  1. Tax planning
  2.  Household  record keeping
  3. The benefit of compound interest
  4. Credit management

Wealth Creation For Financial Success: (Taking money today and pushing it out to the future): Building wealth is taking money today, and pushing it out to the future. We allocate our current resources to future consumption. That’s what we basically define as savings, taking the money I could spend today and saying I’m not going to, I’m going to put that aside for later. And when I start letting that money grow and build, at a rate greater than inflation. 

Why is it so important to build wealth then? 

Is it just because we think we should have more money? 

number one, for the last several decades we’ve seen a major shift from companies and agencies helping to support people during retirement through defined benefit pensions to moving over to defined contribution plans. So the idea that we’re now responsible for our own. Long-term stability. 

The other is what we call smoothing consumption. So, the idea, and a simple way to think about this, maintaining a lifestyle. We want to maintain a level of living. And this is because our resources are going to change over time. For example, someone may take off time for maternity. They may go back to school. They may change jobs and need a transition period. They might even think about retirement. There’s a whole host of things when our overall resources will shift or change, even when we’re planning for it. And that idea of savings is something that will smooth that path for us.

In addition to those issues, think about the goals that we have. And we’re going to spend time on that, of thinking about the many common goals that many of us deal with. But, achieving basic financial goals, buying a home, funding education for children, for ourselves.  In this episode, you will learn how to save money for the future. The future you want to have to happen.

  1. Children’s education and marriage
  2.  Buying a house
  3.  Retirement planning
  4. Go around the world for tourism
  5. Burial/crimination planning

Risk Management For Financial Success: (Future we do not want to have happened): Future we also need to consider when we think of what it takes to manage our household’s ongoing needs and prepare for what’s coming. And that’s what we don’t want to have to happen. In This, we want to think about having something for a rainy day, and that’s what we often call the term is an emergency fund. We’ll talk more about the specifics and mechanics of emergency funds. We want to think about one of the important ideas is we need to make sure that when these shocks come up. And that includes things like getting sick. Maybe a losing a loved one. Being unable to work for a meaningful amount of time. That future we also have to plan for in our financial management.

  1. Property Insurance & Motor Insurance:
  2. Health Insurance:
  3. Disability  Insurance:
  4. Life Insurance:

Bonus: Four Cs Of Personal And Family Financial Planning: The four Cs of personal and family financial planning helps you to save more money to attain financial freedom for yourself and your family. these 4 Cs are as follows:

  1. Creation of Income
  2. Consumption of Income
  3. Conservation of Income
  4. Continuation of Income

The secret to becoming Wealthy:

Maximize Your Hard-Earned Money: Dave Ramsey’s 7 Baby Steps

Baby Step 1: Save for Your Starter Emergency Fund

Baby Step 2: Pay Off All Debt (Except the House) Using the Debt Snowball

Baby Step 3: Save 3–6 Months of Expenses in a Fully Funded Emergency Fund

Baby Step 4: Invest 15% of Your Household Income in Retirement

Baby Step 5: Save for Your Children’s College Fund

Baby Step 6: Pay Off Your Home Early

Baby Step 7: Build Wealth and Give