The ultimate financial goal is to be so darn rich that such expenses like children's college education are like buying a movie ticket. You don't set a financial goal to buy movie tickets. Do you?
Ultimately financial planning is about planning of assets that generate income. The ultimate desired result is sustainable and continuous income, the means is building, managing and protecting the assets that generate such income. The GOAL is continuous income, the MEANS is assets planning.
Set your financial goals in terms of sustainable and recurring monthly income. Maximize the income generating capability of your assets. As you grow older you change your income generating pattern. You move away your income generating assets from human assets, i.e. your time and labour, to financial assets, i.e. businesses, stocks, real estates, etc. You must then remember to protect these assets accordingly.
This is the principle of effective financial planning. Simple and powerful.
Part 1 : The conventional idea
Part 2 : The breakaway wisdom: income and assets
Part 3 : Building assets(i)
Part 4 : Assets(i) planning
Part 5 : Further exploration on the principle
1. The principle in a nutshell
2. Definition of assets(i)
3. Classes of assets(i)