Do It Yourself Financial Planning

Do-It-Yourself Financial Planning.
The fight for financial freedom isn’t fair .​
No matter what kind of​ spin you try to​ put on it, the path to​ comfortable living seems either impossible or​ too long to​ attempt .​
Many people these days are spending copious amounts of​ money going to​ see professional financial planners for advice on how to​ get their money situation under control .​
But let’s be honest, while a​ financial planner can show you how to​ prioritize your spending and how to​ go about consolidating your debt, surely there must be a​ way to​ plan your finances that doesn’t cost you visits to​ a​ professional? This article has been written to​ open some people’s eyes to​ the fact that it​ is​ possible to​ properly plan your finances from the comfort of​ your own home.
The main aim when planning your finances is​ to​ make everything as​ simple as​ possible .​
There is​ nothing worse than sinking so far into depression that you can’t see a​ way out .​
Whether you are in​ debt and looking to​ get out of​ it​ of​ if​ you are simply looking for a​ way to​ keep a​ little more spending money aside each month, the simpler you make your planning the better the result you will get .​
From the beginning, you need to​ be realistic .​
I’ll start with the example of​ a​ single income situation, firstly you need to​ calculate what your net pay is​ per month .​
If you’re self employed or​ not on a​ regular pay, always calculate the worst-case-scenario, what is​ the lowest you might get paid .​
Then go through your monthly bills and write down the ones that are a​ fixed amount .​
Do the same for all other bills but use the worst-case-scenario again, what is​ your estimation of​ the most that those bills might be .​
Add everything up and subtract it​ from your net income total.
Next onto the incidental expenses you might run into on a​ monthly basis .​
These might include petrol, car upkeep, public transport fares, food etc .​
make a​ list of​ all the little expenses you might need money for in​ a​ month .​
Even things that you’re not sure you might need to​ buy .​
Don’t add general spending money to​ the list, be specific .​
Always add more to​ the totals if​ you’re not sure as​ you can fine tune it​ later .​
Again, subtract your total from the money left over from your bills .​
Don’t worry if​ you’ve gone into the negative figures here, we can fix it.
Once you’ve got your expenses total in​ front of​ you, obviously any money that is​ left over is​ your profit for the month .​
In the event that you have nothing left or​ have gone into the minus figures, the next step is​ to​ minimize your expenses .​
Pretty straight forward, huh? Any incidental expenses that you might not need, remove them .​
And any expenses you know you will have, like food and petrol for example, really get down to​ the lowest spend on them .​
How much do you really need to​ spend on them? Your aim should be to​ save at​ least $50 per month after spending money .​
All that extra builds up and gives you a​ nice petty cash at​ the end of​ a​ few months!
If you are in​ a​ multiple-income situation, the same process applies .​
You need to​ start building up that petty cash tin .​
There will always be unexpected expenses, everyone knows that .​
In truth, the basis of​ comfortable living is​ really the knowledge that you can afford to​ pay for something unexpected.
To finish, all of​ this can be done on a​ piece of​ paper if​ you want to​ invest a​ little time, or​ you can lay it​ all out on an​ Excel spreadsheet .​
The way that saves the most time is​ to​ use a​ Financial Planning software program, you enter the numbers and the program gives you an​ automatic monthly planner .​
Whatever way you choose to​ go, always remember to​ keep it​ as​ simple as​ possible .​
When you’re following a​ plan, the pressure on you will decrease .​
What more could there be to​ comfortable living?

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