Start Planning Your Finances
Do you deal with your finances? Does someone else do them for you? Do you just ignore them and figure you're doing just fine? How organized are you with your money? If you don't deal with your money, do you ever worry that there is some kind of problem?
A disorganized financial lifestyle is a recipe for disaster. If you know nothing about your money, you are doomed. I can't even imagine what could happen if you never get things under control. You probably don't even know if you're in debt. This is not where you or anyone should be right now.
Financial planning is a critical part of life. It doesn't matter if you have tons of money and feel you could afford anything or if you make next to nothing and feel you don't have enough money to plan. Planning for both extremes and in between are necessary to succeed financially in life.
Financial planning is not difficult. It may sound intimidating, but it's not. If you really don't think you can do it, you can always hire a financial planner, but for most, it's not necessary. To begin planning your finances, you will need to look at where you are now.
First, add up all your assets. Add together the value of your home, investments, and checking and savings accounts. Subtract out all your debts and you get your total net worth. This is how much money you have.
Once you have your net worth, use it to help you come up with your financial goals. Your first goal should be to pay off debt. Make both long and short term goals.
Don't think any goal is impossible. If it looks too big, start with smaller goals or break up the larger goals into smaller short term goals. For example, you may think could never save a $12,000 emergency fund in 2 years on a $35,000 salary, but if you make a good enough plan, it can happen!
Once you have your goals, you need to come up with a plan. Figure out how much you need to put aside each month. Then make a budget to help you save each month. Make sure you follow your plans. They will mean nothing and do nothing for you if you give up sooner or later.
A disorganized financial lifestyle is a recipe for disaster. If you know nothing about your money, you are doomed. I can't even imagine what could happen if you never get things under control. You probably don't even know if you're in debt. This is not where you or anyone should be right now.
Financial planning is a critical part of life. It doesn't matter if you have tons of money and feel you could afford anything or if you make next to nothing and feel you don't have enough money to plan. Planning for both extremes and in between are necessary to succeed financially in life.
Financial planning is not difficult. It may sound intimidating, but it's not. If you really don't think you can do it, you can always hire a financial planner, but for most, it's not necessary. To begin planning your finances, you will need to look at where you are now.
First, add up all your assets. Add together the value of your home, investments, and checking and savings accounts. Subtract out all your debts and you get your total net worth. This is how much money you have.
Once you have your net worth, use it to help you come up with your financial goals. Your first goal should be to pay off debt. Make both long and short term goals.
Don't think any goal is impossible. If it looks too big, start with smaller goals or break up the larger goals into smaller short term goals. For example, you may think could never save a $12,000 emergency fund in 2 years on a $35,000 salary, but if you make a good enough plan, it can happen!
Once you have your goals, you need to come up with a plan. Figure out how much you need to put aside each month. Then make a budget to help you save each month. Make sure you follow your plans. They will mean nothing and do nothing for you if you give up sooner or later.
About the Author:
If you'd like to know more, get the keys to financial planning. Start with personal budget planning and you will start complete your goals and reap the rewards.
posted by Credit Counseling at
10:25 AM
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