Secret of Financial Independence in just 8 easy steps. Create your own Personal Financial Portfolio.

What is in a Personal Financial Portfolio?

Personal Financial Portfolio is a collection of financial assets such as cash, real estate, mutual funds, stocks etc. Personal Financial Portfolio is being designed based on individual risk tolerance, financial goal objectives, financial security and time horizon. It contains information regarding various asset allocations and the general objective is to get maximum return with minimum risk.

PersonalFinPor_1Why do we need to have a Personal Financial Portfolio?

To answer this question let’s take one example. Let’s say we have an empty land where we want to build a house to live in. To do that, we won’t immediately buy sofa, bed, kitchen utilities. First we will list down our requirements. Requirements such as how many bed rooms, bath rooms, floors (based on our future requirement) and interiors. After that we will go to a professional architect and provide our requirements to him/her, along with our budget. Based on these information the architect will make a blue print where he/she will take care of the nature of land (earthquake, flood area), government rules. Now we have the blue print and the budget with us. With these we will start constructing our dream home. First we construct the base, where huge amount of money and time goes and once the solid base is constructed, we start building the floors. After that we make the interiors and move into our dream home.

Personal Financial Portfolio is also similar to constructing a house in an empty land. Once we make the plan and execute it then we will have a complete control of our personal finance and peace of mind. We will clearly understand how we are proceeding towards our goal and secure our future. At any point of time, we will know where we stand and based on this information we can take good decision in our life, such as early retirement or switching a job or increase our earnings.

“Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do.” –Mark Twain

So let’s see how we can start and create a Personal Financial Portfolio.

We have created 8 easy steps to make Individual’s Personal Financial Portfolio, which we called as a Personal Financial Portfolio life cycle.



Personal Financial Portfolio life cycle:

Step 1: Awareness

Step 2: Present Financial Status

Step 3: Goal Setting

Step 4: Planning

Step 5: Plan Execution

Step 6: Plan Evaluation

Step 7: Financial Achievement

Step 8: Asset Transfer

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