3 Basics of Personal Financial Planning – The Entrepreneur’s Success Formula

The Perfect Equation

Right out of the gate every consultant knows that personal financial planning begins by ensuring the amount of money coming in exceeds the amount being spent. When developing a wealth strategy or a success formula, this ratio becomes the benchmark.

Although this article is based upon personal financial management, entrepreneurs know that these principles can be applied to their businesses as well.

1. Increase cash flow
2. Debt elimination
3. Build wealth

The Growth Concept

Why did corporate America decide somewhere in the last decade that they could fix the cash flow ratio by cutting expenses as opposed to increasing revenue? Growth in business allows for more employees. Stripping the workforce makes expansion impossible and increases the workload on the remaining employees.

From the perspective of home economics, if I increase the flow of cash into the equation, budget items like entertainment and vacations become features of a more exciting lifestyle. The increase in cash flow can be used to leverage more free time by hiring domestic services.

Entrepreneurs use this personal financial education to grow their businesses by hiring people. Higher profits allow business owners to outsource or directly hire people. As more of the day to day activity is offloaded, more time becomes available to pursue other interests; they discover lifestyle by design.

Muck and Mire

Many personal financial services companies exist to help people reduce debt. When we think of debt as a necessary component of our plan we have to ask ourselves, ‘Will this debt produce an asset or a liability?’

Every dollar and every day spent in debt affects how much longer we have to grow before we decide to retire. Debt reduction is like bandaging a bigger problem.

Wealthy people don’t incur losses by paying interest on debts that negatively impact personal financial planning. They give money away because it does help by reducing their taxes and reinforcing the economy in which they live.

Debt reduction is not the same as debt elimination. By eliminating debt, the increase of cash flow allows people to build wealth.

Gathering, Building and Maintaining

It’s possible to increase cash flow, eliminate all your debts and still have nothing to show for it at the end of your days.

Building wealth that endures serves our descendants as well as our world. Great men and women who leave a legacy do so because their vision, or mission in life was greater than the attainment of wealth and prosperity.

This is simply another financial principle. Although the objective is to become wealthy, there is always a reason, a purpose behind it.

That reason can be as shallow as wanting to live poolside in the lap of luxury for the rest of our lives, or deeply involved in alleviating world hunger.

An individual’s personal mission usually includes what they want to leave behind for their family. We know as finite beings that we can’t “Take it with us” which is why personal financial planning also touches the lives of those closest to us.

Ameriprise Financial Services – The Best Personal Financial Adviser

In today’s growing consumer market, where one has plethora of options to choose from for almost all goods and services, many companies have managed to maintain their goodwill and win the rat race with a simple rule – consumer is the king!

Some companies have carved their niche with prompt and accurate customer services and support system. A leading name among financial advisory services today is – Ameriprise Financial Services or the AFS.

Ameriprise Financial Services initiated as a small company from a local office, and have managed to expand a fortune. They are best known for their online financial advisory services and personal consultation.

Their strategy for the same is to use a handy advisor locator. The best part of using this locator is that you do not need to give any personal details. On the company’s web portal simply key in your zip code. The locator would automatically supply a list of Ameriprise Financial Services Advisors with in your vicinity. Be rest assured that you won’t be contacted unless & until you yourself opt to call an agent.

Besides the regular functions of the web portals, Ameriprise Financial Services’ website offers enormous wealth of information on all aspects regarding financial planning. An individual’s financial planning primarily depends on their budget and the financial requirements. However, at the end financial planning remains one’s personal decision. Yet, all of us need to have a clear understanding of our goals from the same.

The personal advisors at Ameriprise Financial Services understand these basics and hence their website details the very core information like:

i. The fundamentals of investment
ii. Tips for paperwork
iii. Information that we must put forward before the advisor to make the best of his services. This way he or she would give you the best possible recommendations for your personalized financial planning needs.

How the Ameriprise Financial Services’ Advisor works?

Ameriprise Financial Services’ personal financial planner initially offers a free consultation session. Here, he or she would help you identify your financial goals. He or she would present before you the realistic & concrete picture of your current scenario and your actual needs. That is your financial stand today and what it requires to meet what you want.

In the following sessions, the advisors would help you synchronize the goals, that is prioritizing the needs & wants. He or she would then prepare the information you need. Next, He or she would present this information in a way that it clarifies all your doubts. Hence the advisor would help you understand the best possible ways to achieve your financial goals.

Ameriprise Financial Services advisors are always there for you in order to answer your questions. Yet, they are just advisors and they would leave the final decisions for the client or customer.

Finally a written plan would be developed. As per your requisites and goals it would also be modified until completion.

That is not all. You advisor would also help you implement the plan with regular meetings. Ensuring that the customer stays on the track to achieve their financial objectives and goals, they would guide you through the required changes as well.

What are the other services provided by Ameriprise Financial Services?

1. Insurance

Ameriprise Financial Services also deals with insurance. They provide:

i. Life Insurance
ii. Health Insurance
iii. Disability Insurance
iv. Long Term Care Insurance
v. Home Insurance
vi. Auto Insurance

2. Banking & Lending Agency

Ameriprise Financial Services is also an efficient banking & lending agency so they help you through money management & financial planning in the practical terms.

3. Investment Products
Ameriprise Financial Services’ investment products include the following:
i. IRAs
ii. Annuities
iii. Stocks
iv. Bonds
v. Mutual Funds

This implies that the clients could easily diversify the portfolios & try varied types of investments during working with the advisors