No matter what time of year of year it is, it’s never too late to start making a financial plan. It’s always a good idea to have a plan in place so you can tell your money exactly what to do so you can reach your financial goals. But, maybe you don’t really know how to start? Here are some tips for bringing your financial plan into fruition.
Tips for Making a Financial Plan:
#1. Start with a budget for the year.
To begin, you should think about having a budget in mind. It doesn’t need to be a set budget, but it helps if you have some numbers in mind. For example, say you plan on spending $400 a month on groceries. It doesn’t have to be a set-in stone budget, but it does give you an idea or a goal to reach towards. You may adjust as needed. Now that you have created a budget for each major area in regards to your finances, the biggest obstacle will be to stick with it. 🙂
#2. Prioritize your bills and debt.
Most people have bills and/or some sort of debt. With the New Year on the horizon, you should prioritize your bills as much as possible. Also, seriously consider cutting down your debt. The less debt that you have, the more money you can put towards major saving goals.
#3. Know what your financial downfalls are.
Let’s be honest for a moment. Everyone has a financial downfall. Maybe yours is shopping. Whatever the financial downfall is, it’s important to know what it is, so you can avoid it. Everyone’s financial downfall has the potential to get them in trouble, which is why keeping tabs on it can help your financial plan, instead of hurting it.
#4. Have money goals in mind.
Every year, it’s smart to plan on having money goals. For 2016, my family had a “savings” goal in mind. We wanted to save as much as possible so that we could put a large down payment on the house we bought. Maybe in your case, there is a certain amount of money that you’d like to save before 2018 hits. These financial goals help us to create a financial plan that makes sense.
#5. Don’t let your financial plan become a distant memory.
Once you have put all this work into your financial plan, don’t let it fall to the wayside. Keep on top of it! Put this financial plan into action, you won’t regret it.
#6. Keep records of your financial plan.
This year, you could plan on putting a financial plan binder together. Everything that has to do with your financial plan can go into a binder. The Budget Binder kit that I have available is a great way to help you to stay more organized and on target with your financial plan.
What tips do you have for someone trying to make a financial plan this year? Do you have any lofty financial goals that you’d like to hit?