Goals and requirements will change as you go through life stages. What is right for you at the age of 25 probably is not the same as 55 years old. The financial plan will help you reach that goal and at the very least bring peace of mind. An American baseball player / philosopher Yogi Bella said, "If you do not know where you will go, it will end somewhere."
The stages and goals of life are generally expanded as follows.
Stage 1: Start your career - this stage is usually characterized by one central fact. In other words, you are broken. There are things that never change, but there is no need to do so by plan or discipline.
Goal:
Refund the student loan
Purchase a car
Buy consumer goods - furniture, iPod etc.
Build a good credit rating
Phase 2: Career / Family - You calm down, get married and start your family. It is time to become serious about financial problems, especially if you have partners or children dependent on you.
Goal:
Purchase a house
Proper insurance coverage
Create a power of attorney / power of attorney
Start saving money
Stage 3: Middle-age - middle-aged is defined as when the phone rings on Saturday nights and wishes not to be for you. At this stage, we usually refund mortgages and start thinking seriously about retirement.
Goal:
Refund mortgage
Put serious money into retirement savings
Educate children
Consider purchasing cottages and vacation real estate
Stage 4: Year before retirement - This stage is usually one of the big savings.
Goal:
Stretch retirement savings
Reduce debt (target is zero debt at retirement)
Plan your retirement style
Stage 5: Retirement - Retirement that is earn enough. Raise your feet and relax
Goal:
Travel
Make necessary changes to the will
Establish a real estate plan
Tax Administration
Remember that all plans will change over time. Surprising opportunities, some good and some bad. Your financial plan must be flexible enough to accommodate changes, but it is simple enough to follow it.
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