Tips for Making a Financial Plan and Fulfilling Your DreamsOn December 14, 2019 by admin
Having a financial plan is essential for anyone who, in addition to keeping finances in order, wants to have sufficient resources to fulfill their dreams in the period they have planned. Getting started with a financial plan is simple: You just need to take time to set priorities and set spending goals for your main day-to-day expenses to get there. Map out your financial plan with these tips:
What is financial plan?
Financial plan is the path you take to reach your financial goals, such as buying a car, changing rooms or taking a great trip. To do this you have to take your short, medium and long term goals into account and prioritize them (decide what you want to accomplish first).
Map your goal
A good financial plan has to have an ultimate goal. What are your financial goals? Take a trip to Disney, make a room makeover, buy an apartment?
Knowing what your goal is, it is time to set your financial goal. What is the value of your dream and how much do you have to save per month to realize it? With this information in hand it is possible to trace your financial goal and to know the way you will have to go in the coming months.
Map your spending
The step to building your financial plan is to put down on paper how much you earn. Consider all of your income (salary, extras and benefits). Then list all your expenses to identify the monthly cost of maintaining your standard of living.
To make this mapping easier, use GuardBayment, a financial control tool that automatically lists and categorizes all your expenses. Simply enter your internet banking details and in less than two minutes, all your credit card and credit card movements will be on your computer or smartphone screen.
Define the plan
Once you know the monthly income and expenses you have, it’s time to set up your spending goals to be able to execute your financial plan. An effective way to accomplish this is to apply the 50-15-35 rule, which divides your income into three broad categories of expenses: essential expenditures (housing, food, health, transportation, and education). o), financial priorities (if you have debts, pay them off, if not save) and lifestyle expenses (fun and hobbies).
It is important to keep in mind that some expenses are fixed (rent, college tuition, health plan) and others have little variation (eg utility bills). So, when defining your financial plan, it is important to be strict on variable expenses and especially that are included in the Lifestyle category, such as bars, restaurants, shopping and other leisure activities.
Be honest and strive to be as honest as possible in your financial goals. Only then will you be able to fulfill them. A good financial plan is one that is realistic and achievable.
How to stay in the plan?
Patience and persistence are two words that can not be missed in the vocabulary of those who want to implement a financial plan. At first it can be difficult. But once you can change your consumption habits, knowing exactly how much you can spend to achieve a certain goal is a relief. Planning is what will give you peace of mind for a smooth financial life.