DEVELOP A FINANCIAL PLAN The need for money is a cry from all over by many people of different economic positions. Financial planning is the key to financial prosperity. You might have millions of dollars but, without careful planning, it could all disappear like vapour. It is important, therefore, to take deliberate steps in planning your spending. This planning may be long-term or short-term, depending on the resources you have. Some people retire with good packages, others have large salaries, and others may even who jackpots with state lotteries. However, all these will return to poverty if they fail to plan their finances. We must make our financial plans in tune with what we want to achieve and them focus our energies on that. Plan before spending and spend the way you have planned. Living within your income is one way you will control your spending. If you spend more than you make, you are spending your future income. To get real satisfaction from money, you must have the ability not only to earn it, but also to manage it wisely. Most people have better ways of acquiring money than of managing it. Financial planning is vital in order to stay out of debt. For example, operate on a family budget so that it guides your expenditure. A financial plan must indicate your avialable income and estimate of your expenses. This financial plan should determine priority areas and must be written down. Expenditure should not exceed income and it is important not to exhaust every income. A financial plan will help you to spend on needs and not wants. Needs are things you cannot do without, while wants are things you can do without. A financial plan should be a written document and should be followed. It does not help to have a plan and yet fail to honour the plan. By Gods grace, strive to follow your financial plan. Some individuals have gone into debt because they do not write down what they want to achieve and instead they spend money on things that do not matter. You cannot have everything at once. A financial plan will help you to leave off your list those items that are neither urgent nor important. When you do not live according to a budget, you are much more likely to fail into multiple financial problems. The old adage that says, Show me how you spend your money and i will tell you your character may well be true. A financial plan is simply an estimate of your income and expenditure. It is a written plan that matches expected income with expected expenses and savings during a certain period. Financial planning requires discipline because of the time involved in analysing expenditures in relation to your income. Even if you have little money, you are never excused from planning. In fact, you may need even more careful planning when you have little omeny. Crockers believes that A spending plan is the guiding force behind good money management. Develop a financial strategy and you will prosper in your financial management... May God bless you all.
Posted on: Thu, 13 Nov 2014 19:04:34 +0000
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