Creating a Solid Financial Plan

 There are many things in life that require a lot of planning and there are other areas in life that thrive on spontaneity and seeing where it leads to. When it comes to our financial lives, winging it may not be the best option as you can land yourself in a lot of trouble. It’s essential to take your finances seriously and put together some kind of financial plan, that is manageable and that will bring you some financial security.

Unfortunately, many of us gain our financial knowledge from our parents and seeing how they handled their finances. But it’s not so common that we are actually taught the right way to manage our financial portfolios. We learn how to spend by what we have grown up with, whether it’s overspending or being stingy and saving every cent. What may have worked for our families or mentors, doesn’t mean it will work for us and our financial aspirations and goals.

So many of us run through life with a to-do-list from here to next year, constantly chasing our tails, that we don’t have the time to sit down, take a breath and really assess our lives. Even more so this is the same for our finances. Ask yourself frankly, do you know how much you spend on a monthly basis? Are you saving any money? What are you spending your money on? Keeping track of our finances is often not our top priority and that’s why it is easy to let your finances run out of control, and to find yourself in a dire financial situation.

It’s never too soon to create a solid financial plan and to really get your finances under control. Whether you’re living the single life or have a large family to take care of, simply going with the flow when it comes to your finances can leave you in a heap of debt. Creating a financial plan that works for you takes some time and some discipline, but once you implement it, you’ll see that it is very worthwhile, especially when you start reaching your financial goals.

A financial plan starts with a change in your mindset. Once you have convinced yourself that this is essential for your financial freedom, then the rest is easy to follow. A positive attitude over your finances, helps to motivate you and stick to your goal. So once you have your attitude in check, you are well on your way to building a solid financial plan!

The second step to your financial planning is setting yourself a financial goal. It’s time to get creative, but make sure you’re also realistic about it and not too hard on yourself. It’s important to set both short term and long term financial goals. Once you hit the short term financial goals, it will put a spring in your step and keep you motivated to stick to the long term goals, which you may only reap the benefits of in years to come.