The financial plan is needed not to spend less and endlessly save, but in order to get more for the same money. We tell how a personal financial plan will help to go on vacation, make repairs or buy a new car.
Step 1. How to start?
To begin with, you need to translate dreams and abstract desires into a format of specific goals, and then soberly assess their value. For example, your family is expecting a child and you are thinking about a new family car. For now it's just a dream. How to make it a goal?
- Determine the most important characteristics of the desired car: the economy of the engine, the volume of the trunk, roominess and so on.
- Examine the models on the market and select a few suitable ones.
- Analyze the offers of car dealers. Trade-in programs or preferential loans can significantly reduce costs.
- Suppose, it turns out that you do not have enough $ 4000 to buy the car of your dreams. And it will need you in six months, when the baby is born.
So, this is no longer a dream, but a specific goal: to accumulate $ 4000 for six months to buy a car. Similarly, you need to do with other dreams - to formulate goals from them.
Step 2. Distribute goals for urgency and importance
Usually I want everything at once. For example, in addition to a car, you dream of an apartment in which there will be a separate room for the child. In the living room would look good home theater. And in the summer it would be nice to go to the sea. When you clearly prioritize, it may turn out that it's better to leave for the fall, when the vouchers are cheaper. Your child's room will be needed not earlier than he turns three years old - so you have time to save up for the down payment on the mortgage. A movie theater, it may turn out, you do not really need it.
So you get a list of goals with priorities, terms and the necessary amounts.
Step 3: Assess your budget
- Analyze income and expenses and calculate how much money you can save per month.
- Count how much you need to put off to get to your goal by the scheduled time. To do this, divide the amount you want to save by the number of months remaining until the date X.
- Compare the two numbers that you got. So you will understand if you have enough money.
For example, on a car you need $ 4000 rubles in six months, so you need to save about $ 600 a month. On vacation, you usually spend $ 1000, they will need you in 8 months - this is another $ 200 a month. In the same way you need to evaluate all the goals.
Step 4. Consider different financing options
It is likely that your available funds will not suffice for all important purposes. Then it makes sense to turn to alternative options: loans and loans.
Before taking a loan, study in detail all the conditions: the interest on the loan, the cost of its maintenance, insurance, which may require of you.
In any case, you need to distribute your income so that money is enough for both current expenses and the achievement of the goal (the accumulation or repayment of a loan). Economists recommend adhering to the principle: no more than 30% of income should go to pay for loans.
It is worth thinking about other ways to achieve your goal faster. This can be paid overtime or cost optimization. Let's say you have a morning ritual - on the way to work, buy a latte for 250 rubles. If you multiply the cost of coffee by the number of working days per year, it turns out that in a year you spend on a nice ritual of 62 500 rubles. This is, for example, a trip to the sea, which you drank on the go.
After that, adjust your plan: consider future payments on loans, additional incomes and reduced expenses.
Step 5. Let the money grow by yourself
If there is still time to the goal, it is better to save it yourself using suitable financial instruments. Choose them based on profitability, risks and timing.
For example, federal loan bonds are a reliable and particularly profitable instrument if you invest in it for at least three years. The bank deposit practically does not bear risks thanks to the deposit insurance system and it can be made for a shorter period.
The main thing is not to keep money in the casket, so you will lose some of the real value of your savings due to inflation.
By investing, you will receive additional income - and it also needs to be reflected in the financial plan.
Simple rules
To make a smart financial plan, you need:
- Formulate financial goals - honestly and clearly, in monetary terms and with specific deadlines.
- Separate them in terms of importance - do not regret this time, not to stay to winter with the TV, but without warm shoes.
- Find the best ways to solve them - consider all options, even the most unrealistic, at first glance.
Keep records of income and expenses - stay informed about your financial situation. - Another tip: before planning a purchase and making it into the plan, think about a few days, do you really need it.
And most importantly - follow the plan
Making a personal financial plan is only half the battle. The most difficult is to adhere to it in a disciplined manner. Every day we are trapped by a lot of temptations, but emotional, impulsive purchases only divert our dreams.
It is necessary to fit into the plan for each item of expenditure. Determine how much money a month goes for food, travel or car, payment of utility services and other mandatory monthly expenses, and strictly adhere to the established limits.
If it does not work out (especially often this happens at first, until a habit is developed) - the plan needs to be adjusted. You can redistribute spending, you can try to earn more. The main thing is to keep within the budget and resist the temptation to "get into the piggy bank". Otherwise, your financial goal will be endlessly postponed.
All expenses and incomes need to be fixed and refer to the plan daily. This will help keep your hand on the pulse of your financial situation. For convenience, you can use financial planning services.