Understanding And Creating A Financial Plan
Financial Planning: Understanding Finance and Creating a Financial Plan
Financial planning and understanding finance is not rocket science. Most of it is self-discipline, however.
However, financial planning and creating a financial plan for yourself and better yet, understanding the mechanics of finance doesn't have to be painful!
Spend time doing a little research and more importantly, spend time going over your own finances meticulously. Be honest about your expenditures and then brainstorm ways to cut them or eliminate them altogether.
You'd be surprised how many thousands of dollars we waste each year because we don't take the time to think about our own financial plan.
Here are some of my suggestions for understanding finance and creating a financial plan you can live with.
Financial planning is something that will last you a lifetime--and don't forget to reevaluate your plan from time to time and make adjustments.
Formulate some long-term goals
- What will you do in the future?
- What are your financial goals?
- Can you realize them?
Insurance---Enough or too much?
- Consider age and dependents
- Protect yourself from catastrophes
- Evaluate different kinds of plans
Never spend more than you earn
- Draw up a budget
- Stick to it
- Track expenses
Always find the best price
- Research every avenue
- Price compare
- Look for coupons and offers
Never buy on impulse
- Take time to think it through
- Research before you buy
- Price compare everything
Credit---Good Credit takes work
- Make it work for you
- Always know your credit score
- Get your credit report
- If it looks too good to be true, it is!
- High-risk investments are just that
- Stick to quality investments
Always pay yourself first
- Your financial backbone is saving
- Save $1 a day at least
- Savings are for emergencies
Learn to live frugally
- Cut costs across the board
- Less is more--almost always
- Pretend you are broke
Purchase financial planning software
- Set up an honest budget
- Track expenses
- Keep a diary of what you spend
Learn to say no
- Don't buy unless it's on sale
- Everything is on sale sometime!
- Find coupons, refunds and deals
Always evaluate why you're spending
- Need is one thing
- Want is another
- Why is it a must have?
Never overpay when you buy a house
- 2-1/2 times your salary--rule of thumb
- HUD homes or foreclosures
- Money down reduces mortgages
Negotiate rates/examine periodically
- APR rates can be bargained down
- Abolish fees on credit cards
- Get cards with rewards
Investigate your options
- Review utility bills and check rates
- Check special allowances or plans
- Lower mortgages by refinancing
Navigate taxes & how to save on taxes
- Consult on ways to pay less
- Learn how to save on taxes
- Find out more on property tax
Get the most bang for your buck
- Go green--use less fossil fuels
- Use less of everything you buy
- Learn to recycle almost everything
More Hubs on Financial Planning
- Financial Planning For Retirement
In this set of principles in the Investment Advice: Retirement Investing series we'll be covering areas of financial planning for retirement including, dollar cost averaging versus lump sum investing, how to use tax-deferred growth in building your..
- Step-by-Step Financial Planning for Young Adults
Young adulthood is for many the most exciting time of life. Between finishing school or starting full-time work and moving away from parents and into an independent lifestyle, this period of life is full of...
- Best Financial Planning For Retirement To Avoid Elde...
This will always remain a burning question that will come across quite often when you will be researching and discussing about the financial planning for retirement and its best options so as to keep the...
- How to Make Financial Plans for a New Baby
Making financial plans and going through the process of budgeting for a new baby will help you become aware of the many costs that are involved in raising a child. Although I dont believe you can ever...
- Steps in Financial Planning
How to do Financial Planning What is Financial Planning ? Financial planning a process where you plan your Investments in such a way which meets your financial goals over time. You must be very disciplined...
- Five Steps in Personal Financial Planning
There are 5 important steps in financial planning that will remain important throughout the process. 1. Organize your current financial condition. This means that you have to organize...
- Financial Planning for the Past, Present and Future
When we talk about financial planning, we usually think in terms of the future. After all, that's what
- Long-Term Financial Planning
Financial planning makes sense at any stage of life, making it easy to forecast and plan your investment decisions and maximize your income. Learning how to budget and manage you money can take time, and...
Interview with the Sponsor of Our Contest
More by this Author
Save money on heating bills with infrared heaters. They heat the entire house including the walls, ceiling and floors and retain the heat!
Let's explore the difference between being frugal and being cheap. Which is better, cheap or frugal? And is there really a difference?
In a tight economy, how much should you pay a pet sitter? It depends on many factors including what kind of pet, age of the pet, what the pet sitter has to do and even how far the pet sitter has to drive to take care...