10 Steps to Start Your Personal Financial Planning

Personal financial planning is the fundamental process of giving guidance, stability and growth to your personal finances.

It implies the willingness to establish medium and long-term goals or financial goals, with the discipline and commitment to make decisions in your professional and professional life productive to achieve these goals.

At the same time it is a financial life project that accompanies you over the years and helps you build your freedom or financial independence.

Here is a summary of10 essential steps to comply with your personal financial structure:

1. Make a sincere budget of monthly revenue and expenditure.
2. Implement habits and strategies for increasing and diversifying your revenues, also of frugality or limitation in non-essential or unproductive expenditure. The result of the new balance sheet should lead to a minimum savings of 10% of your monthly or annual net income.
3. To define three main financial objectives: a short term 3 years, medium term 10 years and a long term 25 years.
4. Identify your profile as an investor and levels of risk tolerance.
5. Considering their profile, age, financial goals, savings surpluses and family responsibilities, request a plan or proposal for financial protection or investment to achieve the financial objectives set. (It is recommended to consult a good financial advisor).
6. Start the plan. Do not differ.
7. Review semester or yearly with your investment advisor, the performance of your investment portfolio, considering the performance of assets, assumed risks, structure costs, legal and fiscal regime applicable to your investments.
8. If necessary, make adjustments or changes to your portfolio. Important the empathy you have with your financial advisor, your understanding for your financial goals and profitability expectations.
9. Always reinvest portfolio gains and also the extraordinary gains you receive annually to have greater financial growth.
10. Have discipline, diversify and enjoy a solid financial future as a rock.

Personal financial planning is more than a plan. It is a continuous and dynamic process.