Features of a Good Personal Financial Plan.
Everyone has desires that they would want to actualize either sooner or after a period. Management of your income is very critical to ensure that you can fend for your daily needs and also save for your goals.
Our salary varies, and so does our needs, and that’s why you need to take some time to plan your finances depending on your income and your needs. Most people sink in heavy debts because they are involved in buying things that they had not planned for hence they spend way too much. It is advisable to plan for our finances and stay committed to the plan because otherwise, we would not solve any issue.
You can use different online platforms for planning your finances, or you can go the traditional way where you use a pen and a book to write everything and generate a plan. The first step is to check your current status regarding your financial status and where you have gone wrong. When you assess your current financial status, you will know the steps you will need to take to your financial freedom journey.
Document about your finances information and these could include where you get money to spend including unofficial means like gifts. From this, you need to categorize your income as what is guaranteed like your salary and what you can term as a bonus, and that could be the gifts from friends or family, and they are not guaranteed. Your guaranteed income should be the one to finance your major bills like rent, food, etc. and the bonus cash could be used for something to treat yourself.
It is essential to know your spending habits and categorize if what you spent your money on is basic or luxury. You should not forget to write about miscellaneous like airtime and transport or fuel as they could be eating a big part of your finances. Your needs should be managed by the income that suits its relevance and as you cut down on what you may term as not basic you should set aside a small percentage of your income to reward yourself so that you are not so hard on yourself.
Setting realistic and achievable goals will push towards their realization and they could be short term or long term to finance what you desire to achieve. You should also have a policy of living within your means which translates to not borrowing to finance your activities and having a savings plan that will ease your savings goals.