Tue. Jul 23rd, 2024

Steps to Make a Personal Finance Plan

Steps to Make a Personal Finance Plan

Face the fact. The most difficult thing you may have managed in your life is your finance. All of us know this fact. We would have tried managing our own finance in one way or the other our lives. But the fact is that most of us would have failed in this attempt. This is because most of us do not know how exactly we manage our personal finance. Managing it is truly very difficult. But once you learn how to manage your finance, then you will find it a lot easier.

Let us have a look at the process of ‘personal finance management’. First things first; get a list of all your steady income in a month. Steady income means that kind of income that is sure to get every month. This can include your salary and your monthly investment returns.

Now, get a list of all your expenses. Separately make a list of your regular recurring and unavoidable bills like your internet, TV cable charges and telephone. Make a different bill for your entertainment and other charges. Now you will have to clear cut idea only how you are spending your money.

Out of this again, cut down all expenses that you think is unnecessary. You will surely find a lot of unwanted stuffs that you buy every month. Stop wasting money on them. Now again start making a plan for your savings. You can slowly increase your expenses by managing your day to day affairs properly. You will slowly start building enough savings and eventually will be having a very secure financial life. But personal finance planning is the key to this.

By Rusty

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