Skip to main content

How to start planning

Important parts of a plan

Financial plan is a flow of money. It must have 2 major items: incomes and expenses. Let's stick with these two for now.

Building a plan

Plan incomes

For most of the people it's the easiest part. We are employees, have a fixed salary. Probably, some income from real-e-state objects we lend, or dividends. Such things is easy to plan.
What if we run a business? Then we should have a rough estimate. Or get some vision based on previous year. Or, at least, our earning goal.

Plan expenses

Pay debts

This is the most important part of the expenses. Debts is the main pressure. If we don't have enough earnings - we can skip vacation, rent a cheaper apartment, sell the car. But debts must be paid in time. So plan this first.

Taxes

Another important thing is taxes. Not paying taxes is a crime. And this must be avoided. Let's plan this too.

Rental payments, public services

Rent an apartment? Plan the rental payments too if you don't like to live in a paper box under a bridge.
Also don't forget to plan the public services. You always can check out your last payments and see how much should be planned - such things we pay every month.

Other expenses

Food, apparel, fuel, car service - just remind yourself what you paid for last weeks. If you forgot something - not a problem - you can update your plan later.
Just remember: having a bad plan is always better than having no plan!

Not able to plan myself

if this is the case, you still have few options:

hire a financial advisor

An advisor will investigate your financial status, history and will build a plan for you. Just do not forget to mention your financial goals to the advisor. And.. be ready to pay for this service.

collect stats

Just live few months without a plan. But log all incomes and expenses you make. Then you will have data to create your plan.

Automate financial plan creation

Yes, this is also possible. Use The Finance Planner for six or more months logging all incomes and expenses. And then it will be able to create the financial plan automatically.
Also, if you would need assistance, you can hire a finance advisor right withing the Finance Planner.
Just check out this solution and you will see how easy it is to create your perfect plan!

Comments

  1. It is truly a well-researched content and excellent wording. I got so engaged in this material that I couldn’t wait to read. I am impressed with your work and skill. Thanks. packaging wholesalers

    ReplyDelete
  2. Great article by the great author, it is very massive and informative but still preaches the way to sounds like that it has some beautiful thoughts described so I really appreciate this article. Best custom mailer boxes service provider.

    ReplyDelete
  3. Excellent information, I am heartily thankful to you that you have shared this information with us. I got some different kind of knowledge from your article, and it is helpful for everyone. Thanks for share it. tea bag supplier Philippines

    ReplyDelete
  4. Such a Great Post! I have read your blog such a piece of great information. I really like your article. Gives a lot of information to the readers. keep it up and share more information.
    personalised tech accessories

    ReplyDelete
  5. I am heartily thankful to you for sharing this best knowledge. This information is helpful for everyone. So please always share this kind of knowledge. Thanks once again for sharing it. pls visit our website carpet cleaning kelso wa

    ReplyDelete
  6. Nice blog post so thanks a lot for sharing this great blog post.. keep more post for sharing.. have a nice day.
    Notary Public Lawyer in Cambridge

    ReplyDelete
  7. Very nice post, impressive. its quite different from other posts. Thanks for sharing.
    Landlord Tenant Dispute Lawyer in Ontario

    ReplyDelete
  8. Good Post! Thank you so much for sharing this pretty post, it was so good to read and useful to improve my knowledge as updated one, keep blogging.
    Notary Public Lawyer in Cambridge

    ReplyDelete

Post a Comment

Popular posts from this blog

5 steps to begin

1. Data Collection Before making any plan you should learn yourself a bit: financial habits and regular, mandatory incomes/expenses. The regular incomes (such as salary), mandatory expenses (taxes, insurance, rent) can be planned right away. However, such things as food expenses, garments might be hard to predict. Then it makes sense to track such expenses for a few months to get an idea about monthly levels of those. 2. Select Method Most of the financial advisors suggest 3D budgeting schemas, like X:Y:Z. For instance, you can see such recommendations as 70:20:10, or 50:30:20, etc. Such methods suggest that you allocate X% of your income to expenses, Y% - to savings, and Z% to debt. Yes, it is essential to make some savings even if you pay the debt. It's life, and many things may happen, we always should have some cash quickly available. 3. Create a Plan When you have collected all the information regarding your incomes and expenses, you are ready to create a plan (or

Poor or rich?

Simple question from the first sight. U.S. Census Bureau  defines poverty as a certain income level, which is $1062 a month for a single in US. However, the life is not such easy. All people are different and have non-identical needs. House rent, mortgage are not the same everywhere. Deceases, allergy any other special needs - all these raise the expenses. Another definition of poverty is inability to keep expenses under incomes . And such way is hard to define: under certain circumstances even $1M of income is still poverty. Furthermore, many people do not see themselves in poverty: the feeling of high incomes keeps them blind towards expenses until it is too late. We take new financial liabilities, debts, burden. Buying a new house or getting a baby - all this raise expenses and we feel wrong only when our savings fall to zero. Financial threshold The threshold, point where the lines of incomes and expenses cross, is often not noticeable for the majority. But even this