Home » Road to Financial Stability

Second Step: Plan

Written By: admin on July 3, 2009 No Comment

Plan, plan, plan… A good plan is the best way to take control of your finances. After you have completed your inventory you will already have a pretty good idea about the severity of your financial situation. Now is the time that you can talk to your lenders and workout the plan that will financially be in your best interest. Look for professional help and if you are reprogramming your debt in order to make your ends meet with the new, lower loan annuity, make sure that you can afford this lower annuity. In order to achieve that, you need to make a plan, best would be to make it on a yearly level. The golden rule of planning is that on income side you should always go lower, and on expense side higher! If you follow this simple rule, you can minimise the effect of possible paycheck cuts that might await you in the future and it will enable you to form a golden cash reserve. Planning is serious business. It should be done on a yearly level, with as many details as possible. Include everything, including presents for your family and friends, possible house repairs, replacement of old washing machine,… Think of everything, because life brings many unexpected surprises, both nice and ugly. Don’t forget that bad things happen to good people too and make sure that you await them with the best plan that you can think of! Plan to save for things that are important to you, like children’s education, new car, present for your anniversary and you will be able to afford the things that you love. At the same time, be merciless when evaluating the necessity of everything. If you are creative you will be able to shed out costs that don’t make you happy and constitute only a habit (i.e., did you ever think that if every morning you spend 3 dollars on bagel and a coffee, it amounts to 1,095 dollars per year!) and replace them with things that have a meaning for you.  Share your plan with your family and make sure that each member of your family understands what future will bring to them. Planning is teamwork and be prepared to listen to their suggestions. Again, when sharing the plan with your family go into as many details as you can so as to avoid confusion!

Leave a Reply:

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

  Copyright © 2015 Become thrifty and save money