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.
Consider source of income
How do you make and spend money?
Keep a spending journal
Assess what's a need vs want
Keep track of your expenses
Organize your expenses
Identify expenses that are
fixed, variable or occasional
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
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.