Your Personal Finance Map To Achieving Financial Freedom
I thought it was a great idea and, with his permission, made my own version.
I based it on what I’ve learned so far, and what I’ve heard from other people’s experiences. I wanted to make it comprehensive but also readable. It turned out to be much more complicated than I initially anticipated. But I think I’ve pretty much covered the main steps and decisions.
Below is the personal finance flowchart I made, hopefully it can be helpful to you (click here to view the image in high resolution or right-click and click ‘save link as’ to download).
Of course, even though I gave it my best effort and I’m pretty satisfied with the result, these types of decisions are personal (it is after all personal finance). So I encourage everyone to tailor the flow chart to their particular situation and goals.
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Some tips to help you on your journey:
I have a loan payment strategy that might work for you. And if you’re juggling between saving, paying debts, and investing, my money management strategy can help you.
If you’re just creating an emergency fund, I suggest placing them in High-yield Savings Accounts – safe (insured by PDIC) and readily available (withdraw anytime via ATM). Or a savings account (I have some tips in choosing a savings account here) if you’re savings are still small.
If you already have an emergency fund, you can invest them in Time Deposits to take advantage of compound interest. If you’re worried about having to redeem them for an emergency before they mature, I have a useful technique to mitigate that.
After that, you can start investing in stock (as long as you’ve studied up enough on it). If you’re new to stock investing, I’ve also got a simple overview of Technical Analysis as well as Fundamental Analysis that can help you.
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