MANILA, Philippines – The road to financial freedom begins in writing your own financial plan.
Salve Duplito, ANC’s resident financial advisor, said a simple financial plan has three important contents: goals and time frame, financial inventory and a financial road map.
“It’s like going on a financial road trip. You need to know where you want to go, what car you have and the gas level, and how you intend to go there,” she said on ANC's “On The Money.”
Duplito said the most crucial part of writing a financial plan is setting the goals.
But before doing this, Duplito said you should first build a value-based system to determine the importance of money to you.
“Financial planning is not just about the money, it is about finding the money that will allow you to enjoy the things you want most out of life,” she said.
Duplito suggested listing down tangible financial goals that allow you to fulfill your values and set deadlines for these goals.
She advised having a "values conversation" with your partner to determine what in life you value most.
If, for example, the answer to the question "What is important about money to you?" is security, the next question is, "What is important about security to you?", and so on.
When the goals are set, bring out all your financial documents from insurance to mortgage and list them down in a worksheet.
Duplito said for the number crunching part, it is best to consult an expert financial planner who can help in cash flow planning, investment planning and tax planning.
source: www.abs-cbnnews.com
