It's impossible to prepare well for retirement unless it's in the context of a broader financial plan. Learn how to build yours.
- The idea of having a financial plan…seems terribly grown up and somewhat complex.…But neither could be further from the truth.…Your plan could be as simple as bullet points…and key numbers sketched into a notebook.…Or as detailed as a multi-tabbed Excel database.…Or as professional as a piece of AI driven software…that automatically updates your plan…in accordance with your behavior.…Well, that last one doesn't exist as yet…but I'm sure it will soon.…You see, most personal finance innovations…are organized by product.…
Here's a budgeting app, here's an investment app,…here's five ways to borrow more money today.…But unless you're taking control of your data…and collecting it in one place,…it can be difficult to get a full view…of your complete financial picture.…And that's where a plan comes in.…Here's the basic building blocks of a financial plan.…First thing, you've got to know your numbers.…What are the baselines for your personal income statement…which is your income and expenses,…and your personal balance sheet,…
- Recognize the strategy used to combat inflation while still working.
- Determine whether investing in a company or working for a company is more profitable.
- Summarize the concept of Dollar-Cost Averaging.
- Identify the simplest, easiest investment opportunity available for young workers just starting to invest for retirement.
- Explain what “diversifying” means by using an example.
- Determine whether incurring debt can have a financial advantage.