Financial planning is key to financial success, if you don’t know or have a plan for your money and finances, be it business or personal then how are you going to know what is going out and coming in.
It is only half of it though.
To be able to put into action a financial plan you will need to learn how to manage your money, or perhaps manage your money better, by this I mean create a budget, shop around to save money, try to increase your income/wages and so on.
Put together financial planning and managing your money can have a tremendous effect on your overall/end result, which could well be financial freedom.
Below are a few tips, ideas and suggestions as to how you manage your money and create a financial plan for success at the same time:
1. Work out exactly what is coming in.
Whether you have one income source or 3 income sources, write down how much money you have coming in every month – then break this figure down to every week.
2. Work out what is going out.
From food to clothing to bills to entertainment, all of these things need to be accounted for on a daily, weekly and monthly basis.
3. CREATE A BUDGET.
I emphasize and insist on creating a budget, as it more or less essential when it comes to managing your money and creating a financial plan.
A budget will help you save money and cut down on any unnecessary expenses.
TOP TIP: Keep a spending diary on a daily basis.
Include everything you spend, every little penny and cent on everything from coffee to a newspaper and see how quickly it all adds up – Look over your spending diary and see what you can cut out.
4. Start drawing up and working on your financial plan.
Financial planning can be fun, especially when you set and achieve goals. So start planning today.
Whether you have a debt that needs to be eliminated, a financial goal that you want to reach, create a financial plan to achieve it and surpass it.
5. Review how you’re doing.
Managing money and financially planning your future and your finances can sometimes become a bit of a chore, and at times it might seem a little bit pointless and unnecessary.
SO to combat these feelings and thoughts I suggest you regularly review how you are doing.
By reviewing your past performance, how much money you have made, or saved, it will inspire and motivate you to continue both onwards and upwards.
I hope you have found this article both useful and helpful and I wish you every success in managing your money and planning your financial future.