Identify your Financial Needs

by ryan on January 5, 2017




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Identify your Financial Needs

 

Earlier two steps assessed your current financial position. Now that you have a better grasp of your net worth (and your investible funds) and cashflow positions, you should be able to identify your financial needs.

For many people, the most pressing needs are: tertiary education funding, retirement and home owership. What you deem important however depends entirely upon yourself and your family. As an aid to help you focus your thoughts on the matter, drawing upon your innermost dreams, hopes and aspirations.

Now if you agree that tertiary education is important for your children and you don’t want to rely on study loans, then naturally enough setting up a tertiary education fund is a must. The earlier you start, the easier it becomes. One that’s done, if you don’t have any idea how much your children’s tertiary education might actually cost, give an estimate. Do the same for your retirement or home-ownership needs and any others that you can think of. Once you done that, you will arrive at the amount required to start each distinct investment programme.

The basic principles are first, determine your financial goal, second, set your time horizon; third, estimate the rate of return of your investment, if in doubt err on the low side, and fourth, determin the amount of investment required.

Samples Excel Sheets:

income-and-expenses-excel-budget-template

large-formatted-excel-budget-template




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