The Role of Income-Related and Investment-related Institutions in Personal Financial Planning-part 2

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Choosing a Financial Path to Travel

The Role of Income-Related and Investment-Related Institutions in Personal Financial Planning-Part 2

1.  Start with the end in mind by discovering your purpose.  Your purpose is something you can get excited about.  Your purpose is the legacy you want your life to leave.  It can be your one of your motivating reasons for moving forward and persevering when circumstances become difficult and challenging.  You can also think about how to plan so that you get to this final cause in a quicker and smoother way.

2.  If you are not sure about your purpose or you can't start directly with your purpose, you can always begin by discovering your passions.  Your passions are activities you enjoy doing and/or learning about.  This could be fitness, outdoor adventures, art, music as a few examples. 

3.  Remember that all of us are involved to a certain degree in a couple of these previously mentioned institutions simultaneously.  One example of this is involvement in corporations and investment organizations that provide 401k for example.

The Role of Income-Related and Investment-Related Institutions in Personal Financial Planning -Part 2

4.  Discover the centerpiece of your path and plan according to what you find. Examples of what could be your centerpiece are a FT job, linear-income business, residual-income business, etc.  Here are a couple of questions to assist you in this discovery:

  • Which is more important to you: freedom or stability?  Those who value freedom more than stability would like to be in business for themselves instead of being on someone else's clock.  Those who value stability more would rather be working for someone else.  In working for someone else it's important to remember that jobs are as stable as they can be today, and don't be surprised if you get laid off or other changes occur.  Developing transferable skills and knowledge, having a workable and well-done resume, and choosing a career path that makes sense for you can help keep you employed most of the time.  
  • Do you have the money for the initial investment of a business and can you afford the overhead expenses of a business?  These two important questions can in themselves can determine the path you chose.  For example, if you do not have the initial investment money, you may need to work for someone else for however long it takes to save up the finances you need to start a business.
  • Is this business something you are passionate about or you can tolerate or do you hate this kind of work?  Of course, if you absolutely hate what you are doing, this is not the path for you on a long-term basis

6. If you make the centerpiece a FT job:

  • Start by evaluating interests, values, and abilities.  Career questionares can help us discover these things.  
  • Are you okay with the lifestyle associated with this type of work?
  • Do you like the company culture or are you at least okay with it?

7.  Chosing "assisting institutions" is also an important step in your plan.

  • You will be helped by investment organizations for retirement funds like 401k, IRA, Roth IRA to name a few.  
  • Part Time jobs also assist with extra income as mentioned before.
  • Businesses for extra and immediate linear income and/or long-term residual income are also options.

To Summarize

In discovering your path to travel financially you can keep the following suggestions in mind:  Start by discovering your purpose and/or passions, remember we are all involved in a couple of these income and investment institutions simultaneously, discover the centerpiece of your path and assisting institutions, and keep in mind some thoughts when choosing the centerpiece of your financial path. 

The Role of Income-Related and Investment-Related Institutions in Personal Financial Planning-Part 2 

Where are You?

So do you know what your purpose is and/or your passions?  Can you apply this discovery to planning a financial path?  Do you know what your centerpiece is by answering the above relevant questions?  Do you know what your assisting institutions could be?

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