October is Financial Planning Month.
Personal financial planning isn’t rocket science. It is merely a process of trying to anticipate problems and planning how to take the fullest advantage of opportunities.
Many of our parents and grandparents successfully achieved their financial security by saving money and investing it wisely. Not only can we do this for ourselves, but we can also do this for our children.
When you, and with your guidance your kids, act on some simple financial building rules, both of you will be implanting a seed, like a farmer, that will grow into something great that can be harvested in the future.
Financial planning is not just saving money. Financial planning is earning, investing, donating, saving and spending money wisely. If money is respected, it will be spread around in a responsible, sensible way.
The goal of successful financial planning is not to create wealth.
That’s only part of the goal. The other part of the goal is far more important. What is that part? It’s to provide the monetary means for achieving your intent in life. Without a purpose, no amount of riches can make your life worth living.
SOOOO, think about instituting financial building rules for you and your kids. I believe in entrepreneurial skills and creative thinking when it comes to kids and money. I believe we should foster financial independence by helping and guiding our kids to find kid-friendly, creative ways to make money.
I believe money is to be earned, not given. No allowances are given in our family! ;o) My two kids have learned to rely on their passions and talents for creating ways to earn money on their own. Teaching the value of money to kids is one of the most important jobs we have as parents.
Celebrate Financial Planning Month by focusing on these money building and money making rules. The sooner you start, the better off financially you and your kids will be:
1) Set up six piggy banks (or bank accounts) and watch these piggy banks/bank accounts grow like magic. When your kids receive or earn money, have them divide this money in six different ways: Grow, Give, Learn, Rain, Goal, and Fun.
Once your kids are used to dividing up their money this way, they will always have money for what they want. Want to help out the neighborhood animal lost & found? Use some money in your “Give” piggy bank/bank account. Want to buy that book on “The Milky Way? Use the money in your “Learn” piggy bank/bank account.
Have a special goal (visit an amusement park)? Save for that goal in your “Goal” piggy bank/bank account. Oh, I need money right now. Don’t worry! Just dip into your “Rain” piggy bank/bank account. Don’t forget your “Fun” and “Grow” piggy banks/bank accounts either! It’s important to make time to just have some fun and you always want to have money around to help you grow.
2) Stick to this money division plan and do not stop dividing your money in six ways whatever the reason! This way you will always have money to do what you want to do. This way you will not have to worry about where the money will come from for what you want to do. You’ve already been anticipating this problem or opportunity every time you earned or received money. How smart you are! ;o)
3) Watch for “paycheck shrink.” What is this? You begin to notice that it’s costing more money to buy that carton of milk or travel on a bus or train. Your money isn’t worth what it used to be! This is the right time to increase the amounts of money you are dividing.
You need more money to do what you want to do.
4) Reinvest your money in your own business or in a friend’s.
Your business may need more products or services to sell.
Investing in your friend’s venture can give you a great return.
Isn’t this awfully exciting? Look at what you and your kids can do with personal financial planning.
SOOOO, in the U.S., don’t just celebrate Columbus Day (the second Monday) or Halloween (31st day) in October.
Celebrate Financial Planning Month too. There’s no better time than the present to kick your finances into high gear.
Cheers … Amanda van der Gulik … Excited Life Enthusiast! ;o)
P.S. Here are some more great Financial Planning tools I found for you! Enjoy! ;o)
(Simply click on the photos, it will open up a new window, to take a “sneak peek” inside them!)