Have you ever wondered how you can make a financial plan that you can actually stick to? If you have, you are certainly not alone. Most people eventually make the decision to create some type of financial plan so that they can cover their monthly expenses, leave some money alone so they can have fun and plan for their financial future. However, you might find yourself in a situation where you are wondering how on earth you are going to accomplish all of this, especially if you have never done it before or if you don’t make very much money to begin with.
There are very few people alive in the world that make so much money that they don’t need to plan for the future. In reality, even those individuals would be doing themselves a favor to plan for the future in case something unforeseen happens. Other people who are barely scraping by as it is might feel like there is no point in making a financial plan because they are worried about how they will put food on the table today. Obviously, this doesn’t leave a lot of room to worry about planning for the future, even if that future is not that far away.
Fortunately, you can make a financial plan no matter how rich or financially strapped you really are. It all comes down to figuring out how much you make each month and then adding up your expenses. Calculate things that probably won’t change any time in the near future like rent, car payments and any other payments that you have in the course of a month. Next, figure out the average rate for utilities such as electricity, gas and water. This will give you an idea of how much you are spending each month on necessary expenses. Don’t forget to include groceries. If possible, be generous enough in your calculations that you have a little leeway when it comes to these types of expenses.
Next, figure out how much money you have left over and then set aside some of that for future savings.
You might choose to invest a portion of it, even if you are only saving $10 a week. Everyone has to start somewhere, and there is certainly nothing wrong with starting out small if that is what you need to do. Make sure that you have a little income left over so you can have fun once in awhile, even if having fun means getting a pizza and renting a movie that you can watch at home once a week.
When you make a financial plan like this, it gives you the knowledge that you are capable of doing it and it gives you a sense of direction. As your income changes, you can adjust it as needed. This will give you an idea of how you can keep better track of your spending habits and save for the future.