It is the process of drafting strategies for the management of personal finances to achieve short and long-term stability, security and financial freedom.  Financial planning stages include: Cash Reserve and Debt Cancellation, Insurances, Main Residence, Retirement Plans and Investments.

The secret is learning to be in charge of the things you can keep under control, for example, cash for your retirement, alternative sources of income, ways to reduce your taxes and diversifying investment options, among others.There are four decisive elements in personal finance planning that everyone should be clear about, which will help you reach those short and long-term goals you have in mind. It will be easier for you to attain your financial goals inasmuch as you understand and carry out each one of these elements.

1.Debt cancellation and production of capital: in theory, if you are a person with many debts, your main goal is to cancel them. This way, you will count on more money at hand to invest in your future and begin to create a capital reserve.

2. Purchasing your main residence: it is very important that we all have a place to live. It is everyone's dream. Some people spend all of their lives planning to purchase their home, while others have to postpone the possibility until things improve. One of the most important reasons why everyone wants to purchase a house is so that they can provide stability and safety to their families.

3. Protecting your family: protecting your loved ones is very important for everyone. You should count on products to guarantee your family's safety in case you are missing. This is why you should count on at least four types of insurances that are indispensable for each person. These are: life and disability insurance, health insurance, contingency insurance and property insurance.

4. Saving and securing your future: when we talk about securing your future, we have to ask ourselves, what do you want to do when you retire? How much money should you have saved away for retirement years so that you continue living your current lifestyle? The answer to these questions is: Invest in your future! How will you do it? You will do it with short and long-term investment vehicles that can guarantee you a carefree retirement and the financial independence you dreamed of for so long. Important: waiting for the last minute may cost you more money. Do not make that mistake!

Financial planning doesn't come out of the blue sky. There are four main steps that will guide us through the planning process without leaving any loose ends. Success in financial planning will depend on you and on how you handle it.

1. Setting reasonable goals: don't pretend to impose unreachable goals on yourself since you will run out of steam long before you reach those goals. These goals may be: to have enough money for your retirement period; to purchase your house or pay it off; to pay off your debts; whatever you want. It is recommended that you set short-term, medium-term and long-term goals. That way, you can make changes to the plan, if need be, without hurting the other areas. There are six important steps to reaching your goals, as follows:

a. To have specific and clear goals
b. To set deadlines for attaining those goals
c. To have your goals in writing
d. To develop a plan to reach them
e. To determine how much money you want to spend to reach said goals
f. To THINK about your goals every day

2. Gathering financial and personal documentation: the information you obtain in this step is of utmost importance, since you will use it to create the strategies that will help you reach the goals you've set.

3. Analyzing and evaluating the information: once all of that data is gathered, the financial analyst will study it and reach certain conclusions. These conclusions may vary from one person to another, given the fact that both the goals and the profile of each customer are different.

4. Making recommendations: once the goals are clear and both the customer profile and the conclusions are designed, the analyst can then begin to make his or her planning recommendations, which are comprised of four areas: debt cancellations, capital production, insurance coverage and securing your future.