Easy Guide to Establishing a Financial Plan

If you’re fortunate enough to have extra money left over at the end of the month, it’s important to think about how it can help you build a solid financial future. Having a medium- to long-term plan for improving your finances is important as it will keep you motivated even when you’re only seeing improvement little by little. Here are some tips on how to start:

Decide what is important to you. What is great about personal finance is that it really is “personal.” You may feel very strongly about saving for a flat while others are more concerned about paying off their credit cards. Listing out the things that are important to your finances will help give focus to your financial plan.

Rank your goals. After you’ve decided what your goals are, rank them. This will help you to decide where to divert any extra money that you find in your budget. If you are saving for a home, you’ll want to prioritise, putting your cash in a savings account. Or, you may start sending extra payments to your credit card company. Knowing what priority you place on each goal will help keep you focused rather than making you feel overwhelmed if you have more than a couple.

Review your budget. Now is a great time to go back to your budget and make sure your spending is in line with your priorities. Do you have plenty of time to cook but find yourself spending quite a lot at restaurants each month? If so, make it a point to bring that expense down so that you have extra money to put towards each of your goals.

Track your goals. Looking at any forward progress you are making on your goals will help you immensely. Seeing your credit card balance go down or your savings account increase will be incredibly motivating and help keep you on track month after month!

The information in this article is provided for education and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness or fitness for any particular purpose. The information in this article is not intended to be and does not constitute financial or any other advice. See a financial planner for specific help with your finances. The information in this article is general in nature and is not specific to you the user or anyone else.

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