Complete “Financial Planning” Guide

Complete "Financial Planning" Guide

First of all, who reads this content? Congratulations on your financial success in advance because of the start of “Financial Planning”.   This is the first step in real financial success.

Start “Financial  Planning” from expenditure accounting

The first thing to recommend is to start with income accounting (check out the application for income accounting. To save us money and put our savings into it again. The recommended savings equation is:

ning" from expenditure accounting

Income – Savings = Expenses

The principle is that once the income has come in, let’s deduct it and save it first. Don’t use it first and save money later, because at the end of the day, many people never have any savings at the end of the month. Many people have the same symptoms:

I’d like to start investing

Want to buy SSF RMF for tax deduction?

I’d like to get a lot of dividends.

But in reality, I’d like to forget these ideas because basic financial planning should start with a financial triangle or a financial pyramid. (FinancialPyramid)

According to the correct principles, we will always plan our finances from the bottom up, starting from the bottom of the financial triangle used for financial planning.

1. Basic requirements and risk management

This sectionstarts with emergencycash 3-6 months before, and this is enough money to cover expenses for  3-6 months.  

This emergency reserve. What’s there to do?

Many people would have said it was a allowance when we were in an accident. I’d like to say that it’s almost right, but in reality this money is for use in case our income stops. Whether it’s being fired from work, unemployed, poor sales, whatever makes our income different. At that time, do not forget that our expenditures never ceased to follow the decline in income.

For “financial planning”, should we prepare the allowance  for  3 months or 6    months?

Personally, it depends on our “source of income”.  If we have a career that can find a new job quickly, it may be enough to prepare for 3 months, but if we work hard to move, there is not much certainty, such as a star-actor. Models and models should be spared for more than 6  months because there is often no certainty. If the job doesn’t come in or finds negative news, it could make it possible to disappear for years.

Or if you have a one-way source of income, such as a salaryman, and no other income, there should be at least 6 months, which is certainly better than missing out.

After we’ve prepared the emergency reserves, We’ll take a look at the insurance enough. This will support us when there is an accident or health problem, which is very important to have adequate accident and health insurance.

What should be sufficient   insurance?

How much should we need because each person has different needs and each hospital has different medical expenses? Therefore, it is best to check if the hospital we visit frequently or where the emergency is required to go to the hospital, ask for medical expenses and buy insurance to cover the cost of treatment.

Medical expenses of 2,000-3,000 baht may not be a big problem because they should be able to pay without problems, but what is more worrying is that medical expenses are in the hundreds of thousands to millions of baht. Whether we can reimburse insurance. Is there enough? This is the most important thing.

Insurance remains the only product in the market that can be used to manage risk. Before we invested in reality. We should start with what is known asbasic needs, because if you are not prepared for financial security, you should start with the basic needs. In the long run, there will definitely be problems. If you put a pile on it, Pouring the floor is not good, even if it is tall or beautiful, someday it should be broken down anyway.

2. Savings orAccumulation

Basic requirements have been handled successfully. It is a plan to save money for certain purposes, such as retirement planning, which many people like to see as unnecessary.

For those who think retirement planning isunnecessary, it may be necessary to rethink because when we want to retire, it is believed that most people do not know how much money is needed and whether it is prepared enough to use it.

Retirement planning is a long-term plan, so long-term investments should also be placed. Whether it is RMF, Provident Fund and Equity Fund, how much savings should be made per salary to meet the target, it depends on each person:

How much retirement do you need — If you retire early, you’ll need to save a lot of money.

Monthly expenses after retirement The more a month — the more you save, the more you’ll need to save.

Ability to invest — if there is more, it saves less.

Current age — If you’re older, you might get tired, you’ll need to save a lot of money (so starting planning early often has a greater advantage).

Another equally important financial plan for people with families and babies iseducation planning, which calculates how much money they will need to spend. So that you can at least complete your bachelor’s or master’s degree.

In addition to these two financial plans, there are actually enough other financial plans, such as planning to buy a condo in 5  years, it is also financial planning.

By planning to buy this condo, it is important to think about how much down payment we will need in the next  5  years to know how much salary we need to save and where to invest, etc. Mutual funds are also suitable, but we need to see how much risk we can take again.

Or planning for a round-the-world trip is also a financial plan, but don’t forget to prioritize the goals first, because by human nature our needs are often many, but of course we can’t do all the goals at once unless we have enough income.

Therefore, it is recommended to start managing the necessary goals first, such as planning for retirement finances or child education, and then managing minor unnecessary goals just to meet other life needs.

What happens if I change What if I don’t manage basic needs and savings (accumulating wealth)?

Let’s say we keep our child’s education money today. Unfortunately, an accident or necrosis (cancer) was detected, causing us to spend the money intended to pay for our child’s tuition. I paid the doctor and didn’t have the money to pay for school. Of course, when you’re in trouble like this, it’s not a good thing. It’s better to keep it safe.

When there’s an event we don’t want it to happen. But we’ve got a plan in place to address the basic needs. The lives of all family members can also be used in a normal and happy way. This is the main thing about financial planning, which the sooner you start planning, the better, because it will make us less tired.

The best tree planting was 20 years ago,  and the second best time is today.


After we have managed key financial goals, we will be ready to help you. It’s time for many people to be good at This is what many people think they have to do first:investment, which is an investment that can be invested as you like. Take what you’re good at. Whether it’s investing in stocks (read the financial series, invest in  stocks in 30  days, here) Personal business, real estate investment

Because this money can be taken at risk, and the goal of this money is to increase our wealth or money.

The best thing about financial planning in this way is to make this whole investment disappear altogether. Whether it’s a financial crisis or an investment error, we can still live the same life. Like nothing happens, sickness, money to heal, unemployment, money to spend, can be adjusted comfortably. Our children still learn the way we intended, and when we’re old, there’s still money to spend. No one’s in trouble.

But the saddest thing is that most people today still plan this kind of finance.

This kind of false financial planning is about bringing about investment. Without proper financial planning. As a result, when an investment is made, it crashes. All we intend is to disappear with our eyes.

With financial planning in this way (or perhaps not intentionally planning the right finances) During the Tom Yum Kung crisis in 1997, there was a high suicide rate because every penny was spent on both business and stock market investments. When the investment did not go as expected, Everything’s ruined.

For anyone who took out a foreign loan during that period, the debt suddenly increased more than 2 times  because the baht rose from 25  baht to $1  to  $56 to $1  overnight.  

Let’s read it here. Everyone should have a good idea why financial planning is so important. Good preparation reduces the risk of life. Don’t let us complain to ourselves that you know you should do that. By then, it should be too late.