It is important to know what money is coming in and where your money is going.
When you know where your money is going and how it is working for you, you can have peace of mind and financial freedom. A good financial plan will include details about your cash flow, savings, debts, insurance, investments, and other aspects of your financial life.
What are the benefits of having a Flexible Money Management Plan?
- Understand your Financial Picture
- Have Confidence in Your Financial Progress
- Feel Better Emotionally About Money and Other Areas of Life
- You Are More Likely to Feel Optimistic
- More Likely to Understand Your Financial Picture
- Tend to have Less Stress and Anxiety Over Money
- Have Better Relationships
When you plan and make intentional decisions about your money it helps you align your financial goals with your values and priorities. This results in a more purposeful financial choice. It gives you greater flexibility during unexpected events and expenses.
What is financial planning?
It is a continuous process that looks at your entire financial situation to see the “big picture.” It can help you create strategies for reaching your short and long-term goals. It helps you build confidence to handle your money, regardless of the obstacles that may come your way at times. It also can help reduce the stress and anxiety and help you align your thinking and beliefs to plan for emergencies as well as retirement.
Steps to Take on Your Financial Planning Journey
Set Financial Goals
To create a plan, you have to have a goal. Your plan will be your guide to reach your financial goals. Saving will be more intentional when you have a plan for your money. Do you want to save for a large purchase, such as a home, or plan for an early retirement?
Focus on Your Future Self
Ask yourself: What is my future self-doing in five, 10, 15, 20 years and beyond? Does your future self-want to own a car, or a house? Does she have debt, Student loans, kids, grandkids? What does retirement look like?
Asking yourself these questions can help you set your goals and make it easier to identify the steps you will need to put in place to achieve your financial goals.
Keep Track of Your Money
It is important to know what money you have coming in and what money is going out. That way you can see ways you can direct more money into savings and investments. If you have debt, you can first focus on paying off debts. Developing a good budget or a Flexible Money Management Plan and telling every dollar where to go will help you reach your financial goals in a doable and sustainable way. (See Blog What is a Budget? Why do I Need a Budget, and Make a Money Plan Ahead of Time)
Plan for Emergencies
You can start small, but at least start. Build and emergency fund for the unexpected expenses. You can start with $500, which can cover small emergencies and repairs, and over time build it to $1000, and eventually to a month to three to six months of expenses.
Pay Down and Pay Off Debt
Pay down your debt, if you have multiple credit cards you can do this a couple different ways, pay of the smallest balance card first and use that momentum to pay of the next one and keep paying them off. Or start with the highest interest rate card and pay it off to save on interest long term. Other debt may be student loans, payday loans, title loans and auto loans.
Have a Retirement Plan
Check with your employer to see if they offer any employer-sponsored retirement plans such as 401K, and if they offer any employer match benefits. Contributing to your 401K will decrease your take home pay, but it is away to have your money work for you and invest in your future.
There are other ways to save for retirement such as an IRA. It is important to speak with a Financial Advisor to help you decide what types of plans are best for you and your financial goals.
Why is it Important to Have a Financial Plan?
Having a financial plan can help you have more confidence when it comes to managing your money. When you hit obstacles such as inflation, unexpected repairs, job loss and more, you will have less stress and anxiety when these things arise.
Having a financial plan will also help you achieve your big-picture goals. It will help you reach savings goals, retirement, estate planning, wealth that you want to pass down to your loved ones and so on.
How can I get help to create a Flexible Money Management Plan?
It is time to create a plan that is doable and sustainable. It is time to create your personalized Flexible Money Management System.
Are you ready to master your money routine and live your best life. Life free from financial stress and anxiety?
Knowing where to start, or even if you have already started, but know where to make some changes or adjustments can be challenging and overwhelming. I am here to help give you that personalized help you have been missing. Let’s discuss how I can assist you to overcome your financial stress, create a doable and sustainable, flexible money management plan and enjoy Financial Freedom! Click HERE to schedule.