Personal financial planning for women [2]

In his book De anima(On the soul), Aristotle (384 BC–322 BC) stated that man is born with a blank slate (tabula rasa) on which experiences and perceptions are written to form the mind. Although tabula rasa is a concept traditionally attributed to Locke, Aristotle first referred to it.

In my first life at the university I had a few years in the study of philosophy, and my first encounter was with Aristotle and the concept of “Tabula Rasa”….to everyone that has the opportunity of seeing the new year, I wish you a very happy new year and the opportunity for a “BLANK SLATE”…If you think you failed in your financial goals or wealth creation plan then here is an opportunity for you to make a new plan and be intentional in your wealth creation plan.

Tell me, how many surprises do you bump into in your life regarding your finances; unexpected car problems, medical bills, school fees, a dream vacation?

Are you a culprit of impulse buying? Do you find yourself in cash crunches before your next payday? We all possibly have fallen victims of the consequences of improper personal financial planning but it is never too late to relook into it and shape the future to what we want it to be.

By definition, Personal Financial Planning is a systematic approach where an individual maximizes the existing financial resources through proper management of one’s finances to best achieve his/her financial goals and objectives.

Let me walk with you through the new year in your journey of wealth creation. Here are a few important guides that will help.

1. Defining Financial Goals

If you ever visit a financial planner, they are highly likely to begin your financial plan discussion by asking you what your financial goals are. Take a few days before the middle of this month and write out your personal financial goals. For easy implementation, I will advise you break them down into quarterly goals. This will give you a better picture of how your year -2022 will look like. And this will help you navigate through the year and give you a broader image of your wealth creation journey.

2. Income Management

Your personal financial plan will help you to manage your income more effectively. This could simply be done by creating a budget so that you don’t have to panic or wonder if you have the money or not. Simply put, planning and monitoring your budget will help you prioritize your spending as well as identify wasteful expenditures, adapt quickly as your financial situation changes, and achieve your financial goals.

3. Measuring progress on your goals

Once you have put a financial plan in place, you can set up measurable goals, such as regularly contributing a specific amount of money toward a savings account or repayment of debt over a period of time. Having a personal financial plan will help maintain discipline towards set targets and thus achieving the set goals.

4. Financial Understanding

Through a financial plan, you are in a better position to understand your financials through the set measurable financial goals and the effects of decisions made. Financial planning can give one a whole new approach to the budget and ways of improving control over one’s financial lifestyle.

5. Assets vs Liabilities Management

Many women find themselves in a dilemma, not knowing what they want to achieve and how best they can achieve it. This confusion has thrown many women into the urge to acquire more liabilities than assets. Usually, an asset owned will come with liabilities attached and so, it becomes important to determine the real value an asset brings. A financial plan will give a simple guide on the best means of settling the liabilities and in the process help one to own assets that do not become a burden in the future.

6. Emergencies

Many say savings are a cushion for a rainy day. However, sudden financial changes can still throw you off track if your savings are not adequate. It is always good to have some investments with high liquidity that can be used in times of emergency.

All in all, it is advisable for every woman to engage in a serious financial planning as the year emerges.

Creating a financial plan can be time-consuming and may require you to face up to some financial realities that you have been avoiding, but it is worth it in the end. Once your plan is complete, you can begin, by taking specific steps to ensure that your finances are in order and running smoothly and with no doubt, you live a peaceful life with fewer surprises.

I am offering free financial planning template to everyone this year, so we can all achieve our goals and ensure we are closer to our wealth creation journey. Feel free to send me a request by email.

I wish every woman out there a productive new year.