3. Financial planning circle

3.1. Personal goal
The first process of planning personal financial is setting the personal goal, and then planning what to do in each age periods, then the personal goal will be achieved. After working for many years, the retired period will be happy, freedom and don’t have any duty for descendant to take – this might be the goal for every body. To achieve such goal, we need a good starting point at the present time, properly planning and good financial resource management will help building the “personal balance”. So the financial planning circle is starting by first setting the personal goal, then plan the financial resource such as saving, investing, assurance, retiring, etc. We should see the important of making the personal balance which are: family life, career and social. This helps achieve the personal goal, contrary to the unplanned and undecided personal goal might lead us work too hard and lost the personal balance.

3.2. Dept management
No body wants to have the dept if not necessary. When people buy a house, a car or invest for a business, wisely manage the dept like having dept only if it’s necessary, regularly pay it back to decrease the dept. Such a management doesn’t affect the personal financial and family.
3.1.1. Ability to find income
The first important thing to consult is not to have unnecessary dept. If you have monthly income, you should choose a credit that you can pay by months.
3.1.2. Financial condition
Interest rate, financial fees such as the cost in managing credit, a fine for missing payment, etc; we should compare between providers and choose the lowest financial condition.
3.1.3. Loan duration
The longer duration we loan, the more interest we will pay.
3.1.3. Loan terms
At present, there are many competitors in crediting business. This is the good chance to choose the best service, and we should carefully compare every provider.

3.3. Insurance planning
Stability is instability, insurance buying can ease the lost in financial in the future. This is important especially when people can’t handle misfortune events by themselves. There are 2 main insurance categories: life insurance and disaster insurance. It also divides into small categories such as health insurance, accident insurance, fire insurance, crime insurance, etc. We should buy the insurances which match our financial need and the risk, by considering the welfare or protection.
There are 2 methods to estimate the appropriate insurance fund:
1. Simple estimation can be calculated by setting appropriate multiplier (3, 5, 10 …) then multiply it to the yearly income. For example, Somsack has 500,000 baht yearly income, if the misfortune event happened, he want 5 years returning to his family, so he buy an insurance of 2,500,000 baht (500,000 * 5)

3.4. Children education planning
When a small member born in a family, love and warm also born. The most important role for parents is to treat their child to be a good person, encourage and support his/her education to grow up, the biggest duty of parents for building personnel can be by planning their children base education.
3.4.1. Searching for information about schools to study, by considering the school’s management, teaching and learning process, costs on studying, school and classroom environment, teachers, and trustworthy.
3.4.2. Set the educational budget: due to the cost vary from different schools such as state schools, private schools, international private schools. The parents should decide and choose the good school for their children and the cost is appropriated to the family income. The budget must be enough for the children until they graduated.
3.4.3. Plan and allocate the educational budget: you must focus on saving and long-term investing for a secure business to help increasing the income.
Nowadays, there are many choices in studying; there are international schools, study in a foreign country is another good chance for them. The parents should encourage and help them in comparing, deciding and planning about their own education as appropriate, look for scholarships to build their inspirations and make them want to study.

3.5. Retirement planning
Changing of social structure, developing of medical science, modern technologies that replace the human works, everything that changed around us affect our lifestyle after we retired. People always ignore about planning their retirement just because thinking that it’s too far from the present. A lot of people can not retire when it’s the appropriated time.
Retirement planning leads to the good life after we retired, it doesn’t create any duty for descendant, and it takes care ourselves with a happy life.
Things to remember about retirement planning:
* Retirement age such as 55, 60, 65 or 70 years old.
* Lifestyle: after retiring, some people may want to travel, some people prefer to stay at home, growing trees, reading, take care of descendant… After we have planned our retirement lifestyle,

3.6. Basic personal tax planning
The government issued the tax policy to promote people’s income savings; we need to study such policy and take advantage of it. Personal tax planning helps us pay the proper tax according to our wish. Understanding the tax payment detail for example, the revenue department defined assembly income of 28 categories including over 50 items help us getting the free-tax. So, we must learn about it and prepare the right documents to get this opportunity. Some examples of assembly income that related to the investment are the income of stock exchanging in the Stock Exchange of Thailand, income of fund unit on some mutual funds, RMF purchasing with assembly income not exceeding 15% and not exceeding 500,000 baht.