Having a document that reflects your goals, a specific action plan to achieve them and your current financial condition is a prerequisite for achieving personal financial independence. Only by learning how to manage your finances, you can achieve the desired result.
Instructions
Step 1
A clear statement of goals.
To draw up a personal financial plan that reflects your attitude towards money, you need to clearly realize and feel the reality of your desires. Abstract desires with general wording are not enough. To implement the plan, a specific goal setting is required. Distribute the tasks that you plan to solve in the next ten years.
Step 2
Analyze your current financial situation.
Make a balance of expenses and income, try to reflect each article accurately - the success of your forecast depends on it. Start with expenses - list all expenses, regardless of the amount paid. Next, assess what you have - what brings you monthly income, what amounts are "frozen" (although they can bring additional income), what property takes money and creates losses. Present the data in the form of a table - so you can visually assess the whole picture, analyze and correct weaknesses.
Step 3
Create a personal financial reserve.
Calculate the minimum required for a normal existence for six months. This reserve will add confidence to you and will become a solid help in case of job loss, disability and other circumstances that may lead to a change in the usual rhythm of life. Insure your life - you will protect yourself and your loved ones from some risks.
Step 4
Consider the best way to accumulate retirement funds.
Step 5
Determine the monthly amount that you are willing to set aside for capital accumulation.
Step 6
The calculation of the amount should be carried out based on current earnings and expenses (5-10%). Determine the financial instruments that are optimal for saving.
Step 7
Gather information about banks, mutual funds, investment methods. Analyze all possible options for your goals and make an informed choice. You can draw up a personal financial plan yourself or seek help from an investment specialist.
