Features of a Good Personal Financial Plan.
Everyone has desires that they would want to actualize either sooner or after a period. 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 we plan our finances it is a requirement to stay disciplined to the course so that we can achieve what we are working towards.
You can use different online platforms for planning your finances, or you can go the traditional way where you use a pen and a book to write everything and generate a plan. Before planning on what you will start doing in the future, you need to evaluate your current status and establish what needs to be done. Evaluating your current status will show you where you are and what you should rectify to move towards your goals.
You also need to write about your sources of finance, and they could be several from your job to your side hustle and gifts. From this, you need to categorize your income as what is guaranteed like your salary and what you can term as a bonus, and that could be the gifts from friends or family, and they are not guaranteed. Your guaranteed income should be the one to finance your major bills like rent, food, etc. and the bonus cash could be used for something to treat yourself.
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. As you group your sspending you should not forget about the small things that may be a big part of your spending like airtime, fuel or transport cost among others. 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.
Your goals could include going on a vacation, buying an apartment, buying new furniture or anything that you desire and they will motivate you to work towards them by saving and once you are able to save for your goals regardless of how small they may be then you are assured of having the ability to save for that big thing. You should appreciate your small steps in the right direction because they count in achieving your overall goal and you can incorporate a way that will help you save more easily.