If you’re not happy with your finances, then the best way to resolve it is to create a financial plan. When you’re equipped with a plan, your situation will not seem as hopeless. You’ll also feel less helpless.
You could either create a plan on your own or speak to a financial advisor to help you craft one. Remember, many people become financial advisors because they like to help people resolve their financial situation.
A financial plan will give you a way to restructure how you earn, spend, save, or invest your money.
Here are some ideas on how to create a viable financial plan:
Set Financial Goals
Designing clear financial goals will transform the business of making and managing your money into a game.
Use visual cues to motivate yourself to play the money game. For instance, if you’ve always wanted to visit Paris, then post a picture of the Eiffel Tower on your refrigerator. This way you’ll see it regularly. You may not know how you can afford to visit Paris, but when you give your subconscious mind a target, it will trigger creative ideas on how to achieve your goals.
Organize Your Finances
The best way to organize your finances is through a proven method you’ve heard about innumerable times—create a budget. Once you’ve designed a budget, test it. Keep what works and drop what didn’t work.
Test out your budget for a month. This will be enough time to fine-tune it.
Resolve Your Debts
If you have considerable debt, it will drain your chances of getting ahead in life. Not only will it ruin your credit, making it harder to get many of the things you need in the future, but it will also make it harder to enjoy positive cash flow because of the high interest rates you’re paying every month.
Think about ways that you can refinance your debt for a lower rate. Jackson Funding, for instance, will be happy to give you a consolidated loan to help you overcome your monthly burden of debt. Instead of paying on several high interest credit cards every month, you’ll simply pay off all your credit card debt with a single low-interest loan. What’s more, you’ll only have to make one payment a month to pay back this loan.
Improve Your Finances with Free Money
There are many ways that you could leave money on the table without even realizing it. If, for instance, your employer offers you a 401k matching plan, you’re looking at some free money.
Another example is health insurance. Take a closer look at your health insurance plan. You might have some money saving options you’re not using. You might pay for glasses out of your own pocket although it’s covered by your plan. Or you might pay full gym membership fees when your health insurance could get you a discounted rate.
Make Savings a Habit
Few people save money. It’s understandable. It’s difficult to put money aside when you can barely pay for your existing expenses. It’s also difficult to put money aside when you have plenty coming in. You would much rather spend it on things that you want or need at the moment.
Saving money doesn’t come naturally to us. We would rather get a shot of instant gratification, then plan for future possibilities.
But there are many good reasons you should save.
Here are three:
- You’ll have money available if you have a financial emergency.
- You’ll have money available if you want to take advantage of a unique, time-sensitive investment opportunity.
- You’ll have money available for any big-ticket purchases that you have your heart set on.
One More Reason to Create a Money Plan
Financial security is never an accident. It’s the result of consistently improving on a plan of action. The more financial security you can build, the easier it will get to take better care of yourself and your family. When you manage your money well, small financial setbacks won’t bother you because you’ll have enough backup resources to handle them. Creating a financial plan is your ticket to peace of mind.