At Fivent, we believe that having stronger personal finances allows us to be freer. Plan your finances to live your own way.
Working towards stronger finances does not necessarily mean aspiring to be a millionaire. It’s all about managing your resources in a manner consistent with your philosophy and life goals.
One of the main difficulties that many people have when trying to improve their financial position is the lack of a process that, applied with discipline, helps them to prosper.
Just as it is important to have good daily oral hygiene habits and visit the dentist at least once a year to make sure you have healthy teeth, it is important to adopt good financial habits and do a full financial assessment regularly to make sure you have a plan to move in the right direction.
This periodic financial evaluation, which I recommend doing at least once a year or whenever an event occurs that significantly impacts your financial situation, must be comprehensive to include key areas to your financial well-being.
Contrary to what some people believe, the financial planning process is not limited to analyzing your income and expenses. To perform a proper analysis and develop a correct financial strategy for you, you must consider other areas such as:
- Investments: design investment portfolios that meet your short-, medium- and long-term objectives.
- Retirement plans: align your long-term investments, including pension plans, with your retirement plans.
- Insurance: check you possess insurance policies to protect your finances from unexpected events that can have a significant impact on your financial well-being.
- Debt planning: assess your debt load to determine how vulnerable you are to changes in your current financial situation.
- Successions: evaluate your preparations to dispose of your assets at the time of your absence.
- Assistance to your loved ones: plan the contributions and financial aid that you will give to your loved ones while you live.
To help you think about and assess your financial position in these areas, we have created this financial planning checklist that you can use.
If you want to supplement the above checklist with an automated evaluation, you can do a free financial assessment at www.fivent.com. Or, if you are a subscriber, you have access to a detailed financial analysis, including recommended action plans.
I invite you to think strategically about your finances so that you can strengthen your financial situation and live in a manner consistent with your philosophy and life goals.
At Fivent, our goal is to help you strengthen your finances so that you can sustain or improve your current standard of living in the future.