Mind Mapping for Life Management – Personal Financial PlanningSubrina
The mind map is a piece of information capturing and organizing technique for people who own many sporadic inspirations. It is all the rage as a useful productivity tool which enables a free flow of ideas. There are several practices in daily life like planning schedule, taking notes, organizing the house, etc. Now I am going to share with you about mind mapping for personal financial planning.
What is Financial Planning?
Financial planning for an individual is a popular practice within the financial industry developing. It is widely used in daily life for managing finance. Six elements consist of the personal financial plan which are income, consumption, deposit, investment, insurance, and liability. They are the best choices for being put into a personal financial planning mind map as the surrounded topics.
Basic Elements of a Personal Financial Planning Mind Map
Income – Income is the payment you gain from your work. For most people, income is difficult to keep in an increasing trend and will not be changed for a long time. You need to estimate your next year income before making a financial plan.
Consumption – Consumption is the process you use the money to exchange for some necessities. It takes a great proportion to be used in daily life for various uses. A budget plan for consumptions ought to be concerned ahead of your plan.
Deposit – Deposit is money you put in the bank as savings. When money is deposited for a period of time, a stable interest rate will be returned with your deposit at the end of that period. Forming a habit of the deposit is necessary for financial planning of green hands.
Investment – Investment is money you put in finance agents to receive a higher interest rate than deposits. Once you put your money into the investment agent, you will bear the high risk with the possibility of loss. An analysis of different investment programs is of vital importance to maximize your profits.
Insurance – Insurance is a means of risk management which is a protection tool to avoid uncertain loss. Sometimes it is the future guarantee as everyone might face accidents. Insurance can not only release your pressure but also support your family.
Liability – Liability is a warning for your property. Balancing income and liability is really significant as it is connected with your credit report.
After understanding the elements of a personal financial plan, you should design a mind map and gather them. With a mind map, you can see the viewpoints clearly with different branches. By brainstorming, you can also fulfill your own financial plan. Have a trial of using the free mind map tool to make a financial plan.