Create a Personal Money Management Plan
Create a Personal Money Management Plan
Create a Personal Money Management Plan
Create a Personal Money Management Plan,This article is show you How to Create a Personal Money Management Plan.Ixgw.com
http://www.ixgw.com/ Best Financial Advice - Financial Planning | www.IXGW.com
Step 1
Track your spending every single day for an entire month. Itemize your stack of monthly bills (utilities and mortgages) on a legal pad. These are guaranteed expenditures with fairly fixed amounts. Then document your credit card balances and payments. List parking fees, gasoline, subway costs, lunch expenses, groceries, personal care expenses (salon, dry cleaners), leisure expenses, and any other daily expense. You need to get an accurate measurement of every dollar spent so be honest when listing every expense.
Step 2
Document your assets. This is the positive side of your money management plan. Keep a running list of savings account balances, investments, home equity and any other assets.
Step 3
Have your family track expenditures too. It's impossible to accurately establish a plan without tracking all household expenditures. Give an expense notebook to your spouse for tracking his or her expenditures.
Step 4
Set up a budget. Begin with your monthly income, subtract your fixed monthly bills, and then other expenses. Use the remaining amount to pay off debt or increase savings. Allow extra money for emergencies.
Step 5
Tackle the debt first. During the planning stage of your money management plan, make sure to pay your bills on time. You accumulate more interest on your credit card and face late fees and a bad credit score. Pay off those debts on time.
Step 6
Set up your personal money management plan. After a month's time, you should have a fairly accurate picture of your financial situation. Continue mapping your finances, documenting regular payments, pay offs, and expenditures. Don't forget to also keep track of savings.http://www.ixgw.com/ Best Financial Advice - Financial Planning | www.IXGW.com
Step 7
Establish short term and long term goals. Short-term goals might be paying off lower balance credit cards, then tackling the higher balance credit cards. Or you might want to start putting 10 percent of your weekly pay to savings. You might want to save for a family vacation or new furniture. Long term goals might involve contributing to your investment portfolio, retirement fund, or establishing an emergency savings fund.
Step 8
Trim your spending. You can increase your available cash (and potential savings or debt pay off) by eliminating some of the unnecessary extra spending. Take your lunch to work, skip the fancy afternoon coffee, eat dinner out less, and combine trips to save on gas. Eliminate indulgence spending. Make sure your home is energy efficient. Turn off the lights when you leave the room, shave and brush your teeth with the water off, and do full loads of laundry and dishes. A few dollars here and there will add up to significant savings over a year.
Step 9
Use cash. Simply, if you have nothing in your pocket, you can't spend it. Leave your credit cards at home.
Step 10
Be flexible and honest. The point of a money management plan is to have a true and accurate picture of every expenditure in your home.
Step 11
Keep saving! Save up your money for special purchases and establish an emergency fund for unplanned home or car repairs. Don't spend with your credit card. Once your savings reaches a satisfactory amount, transfer it to an investment.http://www.ixgw.com/2010/06/create-a-personal-money-management-plan/
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