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.
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