Build a Complete Investment Portfolio
|
By :
Andrew Shultz
Submitted
2009-12-12 17:14:41 |
Financial planning is a skill that can only be learned through practice and persistence. Your end results will depend on the planning and executing a successful financial strategy. Achieving financial goals may be difficult but if you follow our step-by-step guide and continue to monitor your progress, your dream portfolio and secure financial future may be lot closer than you think.
If you're ready to change your life and willing to make decisions that may be painful in short term, you're more than ready to execute financial strategies outlined in this article. First thing you want to do is to draw a complete picture of your financial life at the moment. You need to sit down and make a list of everything you own (e.g., assets such as cars, stocks, bonds, mutual funds, cash, bank accounts) and everything you owe (e.g., liabilities such as student loans, credit card balances.) Be brutally honest - don't keep something off the list because you'll "get to it tomorrow", or "it isn't a problem." The key to changing your life is to determine exactly where you stand now, at this moment in time.
Once you have done that, take a close look at the picture below. This is a very simple yet powerful representation of a successful financial planning. Put yourself right in the middle and start looking at each box to see where you stand. If a box is closer to you it is more important than the box that is farther off. Compare objects in the this picture with what you have just written down on your sheet. Do you have your picture identical to the one shown here? If not, how close you are to this portfolio? There may be things such as college fund that are not important to you because you may be single or don't have children but you may replace that box with something else that is important to you. End goal is to come up with a clear and well defined roadmap for your financial life and how to get to your final destination.
Remember, there is lot more to life than just money but if your financial life is troubled, everything else will fall apart. If you care about your loved ones, you owe it to them to make it better for them and if you manage your fiscal life well, others will follow. Your family and friends will benefit from your financial knowledge and being savvy. Also, the best way to teach your children about financial responsibilities and money is to lead by example. You may not be able to change the job you have or the financial circumstances you currently have, but making a commitment for a better future will definitely change the things that will happen in future and years from now when you would look back at your life, you would be glad that you did certain things that very few people can do.
|
Author Resource:-
|
Article From Fiscalwealth | Personal Finances, Investment and Wealth Management
|
|
