Personal financial planning is the fundamental process to give direction, stability and growth to your personal finances.

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

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

Here is a summary of the 9 essential steps to follow in your personal financial structure:

      • Make an honest budget of monthly income and expenses.
      • Implement habits and strategies of increasing and diversifying your income, as well as frugality or limiting non-essential or unproductive spending. The result of the new balanced budget should lead to a minimum savings of 10% of your monthly or annual net income.
      • Define three main financial goals: a short term goal of 3 years, a medium term goal of 10 years and a long term goal of 25 years.
      • Identify your investor profile and risk tolerance levels.
        Considering your profile, age, financial goals, savings surplus and family responsibilities, request a financial protection or investment plan or proposal to achieve the defined financial goals (it is recommended to consult with a good Financial Advisor).
      • Initiate the plan. Do not defer.
      • Evaluate semi-annually or annually with your investment advisor, the performance of your investment portfolio, considering the performance of the assets, risks assumed, costs of the structure, legal and fiscal regime applicable to your investments.
      • If necessary, make adjustments or changes to your portfolio. It is important the empathy you have with your financial advisor, his understanding towards your financial goals and profitability expectations.
      • Always reinvest your portfolio earnings and also the extraordinary income you receive annually for further financial growth.
      • Be disciplined, diversify and enjoy a rock solid financial future.

Follow these steps if you want to improve your financial planning efforts. If you want our team of professionals to take care of it, get in touch here.