Developing a Financial PlanDeveloping a Financial PlanDeveloping a Financial PlanDeveloping a Financial Plan
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July 3, 2019

Developing a Financial Plan

July 3, 2019
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    Developing a plan

    Developing your financial plan

    Do you have GOALS you’d like to achieve in the next year, 5 years, 10 years? Will you need money to accomplish these goals?
    If yes, then you’ll need a Financial Plan.
    • A Financial Plan will help you organize your spending, so you have less stress and more savings success.
    • You start with setting goals because they will inspire you to complete the next steps.
    Developing a Financial Plan
    Consider source of income

    How do you make and spend money?
    Keep a spending journal

    Developing a Financial Plan
    Assess what's a need vs want

    Keep track of your expenses

    Developing a Financial Plan
    Organize your expenses

    Identify expenses that are
    fixed, variable or occasional

    Developing a Financial Plan
    Create a budget

    Expenses should be less than
    or equal to your income.

    Steps to start managing your money with a budget

    Creating a BUDGET will keep you focused on how much money you have, where it needs to go, and how much, if any, is left over.
    • Your expenses should be less than your total income.
    • If your income is not enough to cover your expenses, adjust your budget (and your spending) by deciding which expenses can be reduced.
    • Always Pay Yourself by adding Savings to your budget and save whatever you don’t need to spend.
    • You can create your budget on a spreadsheet. Or, you can download apps for free like Mint or Wally.
    What does a budgeting app do for me?
    • An app can help you manage your money in real time and help you make sure that your money goes to the things you need first.
    • You can also link your banks, bills and cards to check balances and pay bills.
    Tips for decreasing your expenses:
    • Reduce expenditures on items you WANT vs NEED .
    • Put off expenditures on credit cards or other loans that will drive up debt. Reduce VARIABLE EXPENSES , gasoline electricity.
    • Seek credit counseling to consolidate debt and reduce monthly payments.

    Remember to add savings to your budget

    Tips for saving

    • Try to live below your means, i.e. spend less than you earn.
    • Make your own coffee.
    • Bring lunch.
    • Never buy water.
    • Take a list to the supermarket and stick to it.
    • Look for deals.
    • Spend only on items you care about.
    • Turn off the lights, unplug your gadgets, take public transportation or bike.
    • Replace cable with antenna TV; cut your cell phone expense.
    Save first for an EMERGENCY FUND then save to achieve your goals.
    • What do you want your life to look like in 5, 10 or 20 years?
    • Do you want to own a car or a house?
    • Do you want to attend college or upgrade your skills?
    • Are kids in the picture?
    • Having goals will inspire you to save.

    Resources to practice your budgeting skills

    • Options for tracking and managing your spending - by Better Money Habits®

    • Ways to save money on your monthly bills - by Better Money Habits®

    • How keeping a budget will help you pay your bills each month

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      • Developing a Financial Plan
      • Using Financial Services
      • Establishing Credit
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      • Protecting Your Assets
      • Glossary
    • BLOG

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