Features of a Good Personal Financial Plan.
People have what they want to achieve in their minds either in a short span or after some considerable time. Proper financial planning helps an individual to comfortably provide for themselves and their dependents and work towards achieving the goals they have set for themselves.
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. As much as we need to manage our finances the secret is being committed to the plan and actualizing what you have strategized.
As you plan for your finances you are faced with different options, and you can set aside your time and do your planning, and you can also consider using several templates available online and feeding it with your information to come up with a financial 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.
You also need to write about your sources of finance, and they could be several from your job to your side hustle and gifts. After generally documenting your income sources, you need to classify the income that is assured and that which is unexpected like gifts. You need to match what your income is going to finance on your budget and your regular bills should be financed by your regular income while the bonus money can be used for things like shopping and have fun.
Categorize what you majorly spend on as either a basic need that which you can’t live without and luxury that which adds comfort to your life but you can do without. 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.
You must set your goals as they will be the driving force for you to spend more wisely and the goals could be short term and long term, and that will enable you to save up. 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.