Financial Planning – Some Great Tips!
When it comes to financial planning, there are a few simple measures that we can follow. The majority of people seem to believe that financial planning is a daunting task; however, the reverse is true. Some people are apprehensive about financial planning because it is such a sensitive topic. Charles R. Green & Associates, Inc. has some nice tips on this. We can simplify it if we keep it in perspective, so it becomes more of a healthy practise to develop rather than a ‘chore’ that we must complete.
Looking at our unpaid debts is one of the first moves toward a stable financial future. We should look for options to either pay the debt off faster or combine all of our debts into one easy-to-manage bundle.
Another money-saving tip is to set aside at least 10% of our earnings in a savings account. This may seem insignificant, but if we recall George S Clayson’s book “The Richest Man In Babylon” (one of my favourites), we can recall the tale of a merchant who became extremely wealthy simply by following this simple measure.
Another factor to consider in our search for financial independence is our spending patterns. In other words, we should spend less than we earn. One of the things I constantly ask myself is if I am making more today than I am paying at this shop if I go shopping. This can occasionally assist in putting things into perspective.
The most important factor in being financially independent is to budget (and there’s the dreaded term again). Yes, we’ll need a budget or a schedule to keep us on track. Consider the difference between “welcome aboard flight 927, our flight to Sydney airport will take around 1 hour and 32 minutes, so sit back and enjoy the trip” and “I’m not really sure where we will end up today,but it looks like a pleasant day,lets just fly around awhile and see what happens.”
What this means is that we should have a basic plan or budget in place for where we want our finances to be, as well as a time frame. Believe me when I say that once we’ve established a basic budget for ourselves, it’ll feel like a big weight has been lifted off our shoulders. Creating a financial plan or budget is always simpler than we think.
Today’s market has a plethora of basic spreadsheet programmes that can assist us with our mission. It’s just a matter of taking the time to enter our own data into these spreadsheets, and they’ll calculate our results for us automatically. To put it another way, it’s a simple way to see where our new plans are leading us.