Who needs financial planning

Most of people said that they did not need to consult a financial planner because they think they know how to manage their own financial plan and strategy. But they did not realize that to manage it, they did not only plan but they must know the financial planning tricks and knowledge.

Most people did not have adequate financial planning knowledge and did not know how to manage their financial using the right way and have low financial IQ. They fail to manage their financial plan or like to delay managing their plan. For those who have made a draft of their plan, they fail to make an effective and suitable plan for themselves. It is because lack of financial knowledge and they did not know the suitable financial tools for them to use to make the plan works.

They need a Financial Planner that can create a plan for them that suit their needs and the financial climate and the planner can suggest suitable financial tools. Below are the type of people who need a Financial Planner:-

1. Fresh graduates who just started working.
2. Those who are getting married.
3. Someone who one to reduce their mounting debts
4. Maximizing their saving
5. Wealth creation
6. Just retired and want to plan their EPF money.

Good debts and bad debts

I have just read a good piece of writing by Pakdi. You can read it here.

Of course, there always been a good debts, and a bad debts. To simplify this:-

Good Debts
Good debt is a debt that can give you higher return that the amount of the debts that you make. This include the amount of money that you borrow plus the interest that you must pay in order to borrow the money from the banks. For example, a property or a house that you buy will increase in value in certain period of years and the value in 10 years time is higher than amount of money that you borrow from the bank. But this will depends on the market and the location of the property.

Bad Debts
Bad debt is an opposite of the good debt. It is a debt that will give you a lower return and the thing that you purchase will decrease in value. A very good example is mass production cars. After you buy the car, the car price will drop and it will be keep dropping year by year. Other example is like electrical appliances that you buy by using the plastic card, furniture and much-much more.

Thats why people are getting into deep debts because the did not manage the debts well enough and they did not know the types of debts. Mainly because of ignorance and lack of financial knowledge make them poor and getting poorer. And they blame the plastic card for all the sort of financial situation that they are in. So increase you financial knowledge and don't be like them.

Peter Lynch

Ever read Peter Lynch book?

I have read his book title Learn To Earn, A Beginners Guide to The Basics of Investing and Business. It is a perfect book for a beginner to learn the basics of investing in the stocks, and how to make your business a successful one.

This book started with an interesting introduction that will tell us the history of corporation around us and how many that really successful. It makes us open our mind that we can be an owner or own the share of the corporation and of course the public company shares.

First chapter of this book is very interesting and fascinating for me as it will tell you the short history of capitalism. Chapter 2 is all about the basic of investing that is the type of investment that you can make money from. Chapter 3 is about the lives of company on how it grows and become successful.

There a lots that you can gain by reading this book. The book are recommended for someone who wants to know what is stock market ad how to buy a share and the strategy to become a great stock picker. So buy it and this book will be a great investment for you.