Personal Finance: The FrameWork
Personal Finance is an important part of online investing tips and is something that everyone needs to manage. On this page, I will have links directly to the other pages on personal finance subjects. I will go over the framework of how this will be laid out and the basic definitions of all the subjects I will cover.
1. Planning for Personal Finance
The very first thing that should be done for any business or individual estate is to start planning. In the planning phase, you should learn about where you are right now then set goals of where you want to be. This is an important concept that many people take lightly. Because I think this is so important the first thing that I built was a net worth calculator an explanation of why I use this as an accountant. Use it because it is a free resource for you!
As an accountant, I have learned a specific niche called managerial accounting which is about business planning and internal accounting. For the individuals, these concepts can help you manage your own estate. The rule for creating a budget for a business is to always start out with sales or revenue which would be the equivalent to our personal income. From that point, you know how much income you will have coming in and can set your spending goals from that. It is a simple concept that I will go more into detail about.
2. Money Managment
Money management is another item that is really personal to your situation as a person. I have personally come up with a money management system that works really well for me. Some of this knowledge comes from formal education, but I think that for the average person getting a degree in accounting or finance is necessary. My favorite resource for learning about money management was written a long time ago. The Richest Man in Babalon is a classic book that is easy to read and is a highly recommended book. Honestly, this is where modern the modern financial system derives from.
Honestly, this is where modern the modern financial system derives from. This book teaches you the most important framework for learning how to manage your finances. I have read other great books and listened to other people that are modern day experts and their strategies are close to what is written in this book.
I feel like I pay more than my fair share of taxes. There are some techniques that you can learn about taxes to save you money. I am surprised at how many people don’t know the basics of our tax system so I will try to write about it in an easy way so you can understand the components of a 1040 return. This is also a critical part of financial planning that should help you make decisions.
4. Financial Services
This is a huge part of personal finance making decisions. There are a few things that I would like to write about on this topic such as choosing the best financial planner or the right banker for you. Most of this gets really confusing because there is an overabundance of information and choices. It can make a person go mad!
5. Purchasing Decisions
I go over the basics of this on my net worth calculator page which explains the best way to make purchasing decisions. The main framework of this concept is to accumulate assets that appreciate instead of depreciating assets or liabilities.
Aw. Yeah. The sexiest subject on this page. Some people think insurance is a huge waste of money but it is necessary. In the business world, life insurance is purchased on key players in the company. If they think it is necessary why wouldn’t it be just as important to purchase insurance for the key players in your family?
How can you go from working full time to retirement mode? This is not as easy in the current times as it used to be. The retirement framework will be about getting multiple flows of income so that you can retire and enjoy it. I might not be the type of person who will ever retire but I know that isn’t the American Dream.
There is going to be more auto generators that will be added to this website. If you have any requests for generators let me know and I will work on building them.