If the financial plan is not well organized, the chances are high the others might be a little complicated and confusing and money is needed to execute other goals and a stepping stone to the next phase of your plan.
To manage your finance well this new year, you need to be financially awareness of your situation in the past years and your current situation. How good or bad the situation was? What really made your financial life look good or bad? Do your money control you or you controlled it? Where is your money really going? What’s really making you financially miserable? Do you know what’s going in or out? Do you create budget for it? Do frivolous buying leave you in financial woes? All these factors and others destroys you financially. you need to create your financial plan for the year.
If you have planned well for your money years back and have a better financial structure, you need to improve on it to make the years ahead better and comfortable. If you have not started at all, now is the time to start planning for the years ahead because of the unpredictability of job security, economic instability and other factors. These are not times when the government is as dependable as time past. Now is the time to step up and turn your finance around for good and prepare for a better financial future.
FINANCIAL REVIEW
You need to financially review yourself to know your stand. You need to think hard and meditate and answer these questions yourself to step up financially to be become free.
-Are you financially aware of your situation?
-Are you in debt?
-Is frivolous spending killing you slowly?
-Are you still in paycheck to paycheck life style?
-what’s your mindset about money?
-Are you saving?
-Do you save to invest?
-Any budgeting for your finance?
-Any plan for real estate or acquire your own property for the future?
-Any plan for retirement?
-Any plan to create more source of income for yourself?
– Any plan to build your career?
All these and others you need to sit yourself down and think deeply about and know where you are and what to do to break away from your financial woes. If you have answers to these questions and they are the right ones, you will surely breakthrough financially but if you don’t now is the time for the right answers to project ahead for the future is NOW.
THE EIGHT-FINANCIAL PLAN FOR THE YEAR SHOULD BE:
– PAYING YOURSELF
-START BUDGETING
-STOP YOUR FRIVOLOUS SPENDING
-PAY OFF YOUR DEBT
-SAVE TO INVEST
-RETIREMENT PLAN
-REVIEW YOUR PERFORMANCE
-MULTIPLE SOURCE OF INCOME ( you really need to start a side hustle and money is needed)
All these needs to be in place this year to help you achieve your financial goals and to keep you in good shape in all ramifications. This year should mark the beginning of financial freedom for you and flee from a life of financial struggling. The years ahead is totally unpredictable and none of us can proudly foretell the future and how stable the global economy will be.
I will elaborate one by one on the listed points above so that you can understand better and really know what you are doing and how to go about it. I initially talked about two of them in my past blog post but I will shed a little light here.
PAYING YOURSELF
Paying yourself in these interesting and changing times is one of the best thing you can do to yourself to be financially safe. I had a post on this topic before (WHAT YOU NEED TO DO TO BE A GOOD SAVER; WHY YOU REALLY NEED TO BE A GOOD SAVER) Paying yourself is your true value and gives a level of confidence and security. It’s not easy but it’s a level of discipline and sacrifice to make for the now and then. Times are changing so is the job. You need to pay yourself up to 10-30% of your salary every month and you can be a little strict by increasing the percentage to have a better and secured future. You need to have a saving plan. Create a special account or any dormant account you have or rarely make use of. As you get paid monthly, you automate it by transferring it to that account monthly or talk to the bank to do the automation for you once your salary is paid into your account. There are hundreds and more reasons to save. To secure the future, to become financially free, start your business and a few other things to do.
Now is the time to act and take action. Nothing is ever too late to do or start.
If you notice that you feel stressed with your saving plan and you are always short of cash, work on the percentage you are saving so that it’s simple, achievable and smart. You can have a yearly saving target at the end of the year like having saved a minimum of #50,000 to #150,000 or saved a maximum of #200,000- #900,000 at the end of the year after accumulating your monthly saving at the end of the year.
To know the exact amount to save just make use of this simple idea I once learned from a financial planner and a fund manager told me about to help you save comfortably without stress or worry.
SAVING (The real money to pay yourself monthly) = SALARY (Money earned at the end of the month)- EXPENSES (All expenses to be paid for the month)
For example; saving (#35,000) = salary (#100,000)- expenses (#75,000)
CONCLUSION
Paying yourself leads to financial security and always to first step to been rich. With these plan in place, act on them and it will lead to financial freedom.
These sums it all, with these you know how to start your financial goals for the year and take a bold step to secure the future.
You can share with me why you can’t really save and why you don’t have a financial goal to achieve.
Yes we should plan well on financial part
Thanks for sharing such a great article about financial planning
Thanks. I hope you plan well to move towards financial freedom
I love this post! And it’s exactly what I’ve been thinking about most lately! Saving is so important! Great post!
Thanks a lot. Saving is the freedom to be free from debt and financial struggle.
Now this is a useful article! Most of us face financial problems at one point and this article seems to englobe the key element to prevent some common causes.
These are common causes we take for granted or never look into till we live in penury until we become financially aware of where we are and move forward. Thanks
“Pay yourself first” was the financial advice I learned in a very hard way. I would normally pay everyone else but me and in the end, I end up using the business money and profits for personal needs since I didn’t make provisions for it. It took the ‘near-crash’ of my business for me to learn the importance of including myself on the payroll.
Great advice you have here. One that will benefit anyone who uses it.
Thank you for sharing.
Good that you became aware of your financial mistake and now you are a better person and better business person. I know you will continue to pay yourself now. Thanks
Great post ! I’ve been thinking about it since December.. You’ve clearly explained about Financial planning Thank you so much for sharing !
Good to know this post make you aware to planning financially. Thanks
Wow! This is something really helpful and for self realization as well. Thanks.
Great the post really helped you realize yourself. Thanks
Wow you made a wonderful financial plan and it seems so superb. loved the post bro. keep it up.
Thanks bro..
I really love how organized you are. Way to go!
irinathayer.com
Thanks for the remarks
Great post.. Helpful and smart.. like it 🙂
Thanks for the compliment
I have a long list of financial plans for the year! I’m working on increasing my networth, paying down debt and increasing my contribution to my 457 plan!
That ‘s extremely great. Pls follow up with your financial plan to become financially free. Thanks
You always offer some great advice . This is what I needed to guide me so far for the year . I am on the right path 🙂
Thanks. If followed, guides you to financial freedom.
I plan to follow all of them . This year will be mine 💖💖
That will be great. Wish you a great year. Thanks
You too . Rocky so far but I am always optimistic
Always be optimistic and you will come out smiling at the end of it all. Thanks
Good advice, thank you! We should all be more financially sound.
Being financially sound is being able to manage your money well by saving, investing, budget and others. Thanks.
Please send me details in my email for financial planer
Thanks. You can search for one in your country and location through the internet..
It’s always surprising how many people actually do not have a plan or any clue about their finances. They just spend spend spend “hoping” it all evens out. Just read an article, 1 in 3 are in the debt trap.
You are absolutely right and they never think of saving but just spending frivolously. Thanks
This is something I really need to do better with; I’m terrible with budgeting. Great, thorough article and advice.
Please work on budgeting to make you achieve your desired goals. Thanks
This is great!! I think you have really hit the point when you say that we have to be financially aware of our situation. I often find myself spending and not realizing there are larger goals I need to be saving for. Great job
-elenathinkslife
Being financially aware of where you are let you know how your financial situation is and the next step to take. Thanks..
Some great tips! I agree that many succumb to frivolous spending. Paying yourself 10 – 30% first is a great way to ensure you save. Thanks for the advice 🙂
Paying yourself is still the road to being financially secure. Thanks
Paying yourself first a good percentage of your income is the sure way to financial security. Thanks
The hard part is saving in the midst of trying to get financially straight. I want to incorporate techniques. Being transparent is first and foremost….
Saving is hard as you said but it takes discipline, committment and delaying gratification to do it and incorporate the techniques too
Trying so hard to get around frivolous spending. But there always seems to be something we “need”. Thanks for sharing your tips.
There’s always something you need which can be managed and delay gratification to become financially secured. Thanks
This is some sound advice and I definitely believe in paying yourself first!
That is great. Thanks.
I started paying myself when my husband and I first planned to buy our own house and it has helped tremendously in saving money quickly and achieving our goal within a year. This is a great piece of advice and everyone who implements it will see the benefits straight away. Your post are always very insightful!
Thanks lucrezia. You have really done well and i hope you plan to become financially free and push for greater goals this year.
nice post.
Thanks
Hi there I have nominated you for the Quill Commander Award http://bajezen.blog/2018/01/23/quill-commander-award-dronstad/
Thanks. I really appreciate this.
Hy rawlings. I’ve been lowkey following your blog for a while now😭😭 I’ve come to say I really appreciate your blog posts about money. Really really helpful. Thank you so much and I hope you keep doing you!
Thanks a lot for connecting with my post and it been of postive impact to you..
No. Thankyou!
Why No?
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Thanks for rebloging
Very well planned financial chart and saving plan.. I really should consider all this.. thanks
Its really worth considering
Thanks