How to Make Personal Financial Planning Easily

financialtreat – will explain about How to Make Personal Financial Planning Easily which you will get in the following article. let’s look at this article carefully!

In order for us to have healthy finances we must be able to do good personal financial planning. But there are still many people who are still not clear on how to do this planning properly and correctly. Here we will provide additional ways to make personal financial planning that you can do.

Actually how to do it is very easy if you follow the steps below. Make sure to fill in all the information according to the current financial situation so that the results can also be better. Do not fill in according to the things you hope to remember will happen to your finances. Without further ado, here are some ways to make personal financial planning .

How to Make Personal Financial Planning Easily

How to Make Personal Financial Planning

As we mentioned above, on this occasion we will tell you several ways to make good and correct personal financial planning. This will certainly be very helpful for all of you who wish to have healthy and well-planned finances.

If you follow all the plans that you have made according to the steps we provide below, then of course you can get a healthy financial atmosphere. Think carefully about what you want to include in this plan. Make sure to fill it out properly and correctly.

1. Create a Expenditure Estimate

You have to calculate, how much money you get each month after the tax deductions and other salary deductions. Be sure to include a source of income that you can rely on, such as a regular salary.

If there are other incomes that are not fixed, you can include them in other income categories. You also need to make these calculations before the month starts so that you have enough time to complete this planning.

2. Record All Personal Income and Expenses

If you don’t have a personal financial record, you certainly won’t be able to manage your finances properly. Keeping track of personal income and expenses will give you many additional benefits and be the first step of good financial management.

You can see where your income is used so you can know what expenses you can reduce and or increase the nominal according to your needs. It will also be very useful for designing financial goals.

If you have plans to buy a laptop in the next 3 months, then you should start saving money from now on. It can also be used to estimate the money for savings that you have to spend every month so that your goals can be achieved within the specified timeframe.

3. Use the 50/30/20 . Formula

You can use the 50/30/20 formula method created by Elizabeth Warren. This method requires you to divide your net income into three parts. A more detailed example is as follows.

You must set aside 50 percent of the income for daily necessities and also mandatory bills. Examples include shopping for food, toiletries, and even medicine. Also include mandatory bills such as electricity, water, insurance, and more.

Calculate correctly, and whether this corresponds to the amount of 50 Percent of your income. If it’s too much, then you can reduce it by choosing a cheaper item. Set aside 30 percent of your income for entertainment and other necessities so you can keep things fun while managing your finances well.

You can prepare your budget in advance to get the entertainment you want. This means that you can still have fun even though you have conducive finances. Set aside another 20 percent of income for savings and investments. This could be in the form of an emergency fund or an item you want to buy. You can also include it as a retirement fund or investment capital.

4. Pay Debts and Installments on Time

Being free from debt will make you more conducive and comfortable with your financial condition, because you will not have other burdens for daily expenses. You will also not get involved in an endless vicious circle. Debt conduits usually arise because you have needs that your daily income cannot meet.

You can go into debt to pay off debt, so your debt will not run out first. In order to be free from debt, you can control the desire to owe. If your debt is in the form of a credit card or other loan, be sure to have interest-free debt. You can also combine debts in one place so you don’t get confused. Make sure to pay quickly so that it is paid off quickly.

5. Press Consumptive Expenditure

Reduce consumptive expenses that you usually do in daily activities. Because this will make you even more penniless. It is also strictly prohibited by financial planners everywhere. Minimize all the consumptive expenses you have and make sure you only buy the things you need and also at low prices.

6. Allocate for Emergency Fund

Make sure to always set aside an emergency fund on each of your income. An emergency fund is very important so that when something unexpected happens, our financial condition is not compromised. The nominal can be in accordance with financial conditions and spending priorities. Ideally if you are not married then you should collect 6 times of the total expenses per month. You have to remember unless emergency funds and savings are different.

7. Have Health and Life Insurance

Make an effort to have health and life insurance, as this is a very good investment. But many people feel that it is a loss to pay it every month because they cannot get the benefits right away.

Though you have to realize unless this is a form of proverb ready umbrella before the rain. We have to always be on guard when it will rain by always carrying an umbrella. With insurance, you don’t have to be afraid to pay for health costs when you have to spend quite a lot of money.

How to Make a Monthly Personal Financial Planning

Some of the ways above are general monthly planning. If you want to make a more detailed personal financial plan, such as per month (that’s better), you can follow the methods below.

This will become more useful as you do it per month. You will also find it easier to plan finances per month compared to year because if per year there will certainly be more things to think about. If you want to understand how to make a monthly personal finance plan, you can see below how to get it.

1. Create a Monthly Budget

Making a monthly budget is a very important activity because you can better understand what expenses you have to spend each month. Sometimes it’s possible for someone to find it difficult to find expenses per month so that they become extravagant. Having monthly expenses allows you to register what your expenses are and then see if they exceed your monthly income or not. Make sure if these expenses are detailed and fixed. Examples can be boarding houses and transportation costs.

2. Determine Financial Priorities

After you determine a monthly budget, you must determine your financial priorities. The trick is to prioritize buying the things you need and have run out. You can refill this item or it is an item of daily necessities. Make sure the maximum amount is also so that you don’t waste time shopping.

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3. Synchronize Paying Bills

Don’t think you will become rich right away after you receive your salary. The first thing you should do is pay all the bills you have. Such as water bills, telephone, credit, and other bills that are already in your monthly budget. This is important so that the cost of daily necessities is not disturbed. Make sure to pay on time so that your financial burden can be reduced.

Well, those are some ways to make a personal financial plan. With this article, you can manage your income and spending money, hopefully it will be useful from me, thank you.

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