DOES AN EMPLOYER GAIN ANYTHING BY SPENDING MONEY TO TRAIN EMPLOYEES TO MANAGE THEIR PERSONAL FINANCES?
Yes! In many ways, even though it might not be readily apparent.
Employers often seek to attract and retain quality workers through competitive salaries and benefit packages. However, before long, employees who are poor managers of personal finance become dissatisfied/disgruntled regarding salary levels and are sometimes the least motivated by a salary increase or a bonus. Poor money managers often blame inflation or the employer’s salary scales for their financial plight. At the same time, such workers experience loss of focus on the job and demonstrate lower levels of productivity. Employers who wish to gain a higher return to their investment in payroll and staff benefits may do well, therefore, to train staff in personal money management.
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WHAT IS FINANCIAL PLANNING?
Financial Planning is the process of identifying your goals and determining a plan to accomplish them through the use of financial products, personal discipline and motivation.
HOW DO I KNOW THAT I AM ENGAGING IN FINANCIAL PLANNING AND THAT I AM NOT THE SUBJECT OF A SALES PRESENTATION?
The planning exercise focuses upon you and not upon a financial product that the purported advisor sells. The exercise addresses seven issues:
1. What are you goals?
2. What are your available personal and financial resources?
3. How do you manage your income and expenditure?
4. What strategies should you employ to improve your results?
5. Identifying and Isolating risks (i.e. What are the obstacles or chanced happenings that could stand between where you are and where you wish to be?)
6. Implementing a plan of action. Taking action now.
7. Setting up periods to monitor, review and up-date your plan.
If these seven issues are not all addressed, and your are asked to make a decision to purchase a financial product, you are likely evolved in a sales interview of some sort.
WHAT IS PERSONAL MONEY MANAGEMENT
Simply put, it is lifestyle management expressed in financial terms.