Hi, I am your personal finance assistant chatbot. Please follow the instructions/steps given below for setting your client's financial plan or personal financial plan (you may also skip the instructions and go directly to the input form below OR perform a quick analysis on personal finances here):
Financial Goal Setting
Instructions/Steps:
Organize personal finances and create a personal budget
First, identify how much cash or cash equivalent assets (such as certificate of deposits, GIC and other savings) are available on hand at any given point in time. Then, determine the target amount for retirement / down payment for home purchase / college fund for kids, etc. These two numbers set the stage for how much more needs to be saved each month/year and at what rate it needs to grow annually. This can be easily done using the form given below. Simply insert into the textboxes/dropdown-lists and press Enter
Next, identify how much is spent each month in comparison with monthly income. If the income minus expense is less than the desired monthly savings amount, start by categorizing the expenses into groups and sub-groups (e.g. food, rent, transportation, etc). Then, look for opportunities to curtail expenses in various groups based on personal preferences to extract the desired level of savings. A simplified alternative approach could be 50-30-20 rule which recommends allocating 50% of income to needs or fixed expenses, 30% of income to wants or variable expenses, and 20% of income to savings, if it provides the desired level of savings
It is also important to regularly monitor plus plan for upcoming significant expenses and maintain an emergency fund. Keeping track of all debts (e.g. credit card, student loan, car loan, mortgage, etc) and paying down debts regularly are good financial habits. In addition to reviewing the personal budget as and when personal situation changes, review the personal financial plan/goal and the continued suitability of common investment portfolios using the form given below quarterly or at least once every 12 months for evaluating progress
Your Long Term Financial Goal/Plan:
Outlook and Economy
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