Finance & Enjoyment Blog

What is Personal Financial Planning?

Here at KKB, as Denver wealth management consultants and Denver CPA firm, we often get asked about personal planning and what exactly is “personal financial planning”. The official definition of personal financial planning is:

The process of managing your money to achieve personal economic satisfaction. This planning process allows you to control your financial situation.

It goes without saying that most people want to handle their finances so they get the full satisfaction of each and every available dollar. Some typical goals could include getting a new car, a larger home, extended travel, career training, or working to be self-sufficient come retirement years. However, every person, family or household is in a unique position. Therefore, every financial activity must be carefully planned in order to ensure they reach their specific goals.

Having a solid financial plan in place can help you enjoy a better quality of life and increase your satisfaction by reducing the uncertainty about your future needs.

Personal Financial Planning Process

Step 1: Determine You Current Financial Situation

The first step is simply getting a picture of your current financial situation. This includes your income, savings, expenses and debts. Getting a solid picture of you current assets, debts and amounts spent on various items gives you a foundation for all planning activities.

Step 2: Goals

Determine what goals you have for you money. Part of this can involve identifying how you feel about money in order differentiate your needs from wants. Ultimately, these goals are your own and they can widely vary from person to person.

Step 3: Identify Alternative Courses of Action

Having alternative enables the ability to make good decisions.

Step 4: Evaluate Alternatives

With alternatives available to you in your plan, it is important to perform evaluation. Every decision could involve some form of risk or even a trade-off. So, taking some time to evaluative is important as you consider your personal financial goals – both short- and long-term.

Step 5: Create and Implement Financial Action Plan

In this step, you create your action plan and requires you to choose ways to achieve your goals. As you achieve short-term goals, the next goals in your priority will come into focus.

Step 6: Reevaluate and Revise

Not plan is set in stone. As life changes, so can your plan. As markets change, so may your plan. Therefore, you will need to regularly assess your financial decisions.

How to Use this Information

When it comes to your personal financial planning, you are not alone. At KKB, P.C., we are here to help with Personal Wealth Management. It starts with our Personal Enjoyment Profile that will help identify your goals and ascertain what brings you enjoyment in life. Call us at 303-815-1100 and begin now!


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