To achieve financial well-being and freedom, you need to draw up a personal financial plan for the year. This document should reflect the current state of affairs, financial goals and a plan to achieve them. Only by defining these provisions for yourself, you can solve financial problems and increase your capital.
Instructions
Step 1
Define financial goals. They should reflect your desires and aspirations for the coming year. It is necessary to formulate these provisions specifically, clearly and purposefully. Having formulated these goals, you will actually determine most of the items of future costs of the financial plan.
Step 2
Analyze your current financial situation. As a result, a document should be drawn up that resembles the accounting of a large enterprise. Many people do not think about how much they spend on daily necessities, which consist of travel expenses, grocery shopping, entertainment, medicine, and more.
Step 3
Conduct a specific calculation of your expenses for all items. After that, assess the position of your assets, which consist of those that bring in and do not bring in income. As a result, a table should be drawn up, which indicates the amount of monthly income and expenses, assets and liabilities.
Step 4
Take care of protection. First, you need to start with insurance that will keep you and your loved ones safe from unforeseen risks. Secondly, create a cash reserve, the amount of which should allow your family to live comfortably for 3-5 months. This will allow you to insure you in the event of a job loss or other circumstances of a decrease in income. Thirdly, take part in the pension program, which is organized by various non-budgetary and credit organizations.
Step 5
Calculate how much income you can spend on investing. This will allow you to receive additional income and improve your own well-being. For investments, you can use the surplus funds at the end of the month, or deduct a certain percentage from the income every month.
Step 6
Formulate a strategy, choose tools and draw up a financial plan for the year. Summing up, you will determine the amount of start-up capital for the year, select service organizations and banks, as well as their programs for investment and savings. In the end, all possible risks must be taken into account.
