Advertising
Advertising

How To Create A Financial Plan

How To Create A Financial Plan

These are rough financial times for everyone – people are having a hard time maintaining their finances and they are living from paycheck to paycheck. The first years of marriage are fun and comfortable – that is true – but that is just a game you are playing as one big happy family. “Nothing else matters as long as we are all together” is a sentence you have heard in dozens of movies, but life has taught us all that money doesn’t fall from the sky and that miracles rarely happen.

The process of achieving financial stability is slow and it implies a lot of sacrifices, but it will be your shelter when the financial storm comes. It is never too early to start planning for the future. Creating a financial plan can and will help you overcome some of the biggest financial moves in your life – such as buying a house or a car, college payments for your children, etc. Here are a few steps which will help you form and harvest the full benefits of a financial plan.

Advertising

Review your budget!

First of all, you need to assess your monthly income and expenses that burden your monthly budget. Water, electricity, heating, and phone bills are always a top priority. Evaluate your expenses and try to find a loophole – where you can save some money, whilst avoiding debts. Reason your expenses.

Open a separate savings account

By tightening your budget, you will end up with a certain amount of spare money at the end of each month. Instead of just throwing it away on some random pleasures in life, put it in your savings account. Even if they seem small and meaningless at that point, they are a vital part of your future savings. Restrict yourself from using that account except for emergencies only!

Advertising

Set measurable goals

Saving money for “just in case” is a bad thing. You need to set measurable goals for your savings. For example, saving for a car as a concept will be far less motivational than saving for a “Mini Cooper”. Always keep your mind on what are you saving for. This way, you will know when you have reached your goal and when to start saving for something else.

Motivation is important

Although long term saving is rewarding at the end, you will have to restrain yourself from some simple pleasures in life. This often results in lack of motivation and most people often give up. That is why you need to keep motivating yourself for successful saving. For example, whenever you reach a milestone (like six months of saving), reward yourself with something small and meaningful, like a family night-out – a movie or a dinner.

Advertising

Reconsider hiring a financial planner

If you are finding it hard to plan for yourself, you can always consider hiring a financial planner. You might find it difficult to calculate your budget on a monthly basis. That is why you can always consult an experienced accountant that will help you estimate your budget and point you in the right direction –the one which can save you money. Keep in mind that although financial planners are charging for their services, they can help you significantly when it comes to controlling your budget and optimizing your monthly savings.
As we mentioned, saving for the future is a hard and slow process but it’s highly rewarding at the end.

The sooner you start saving, the less you will have to fear for your future. A good savings account will provide you financial stability, not only in rough financial times but for significant financial emergencies as well.

Advertising

More by this author

Ivan Dimitrijevic

Ivan is the CEO and founder of a digital marketing company. He has years of experiences in team management, entrepreneurship and productivity.

40 Amazing Date Ideas for Valentine’s Day 50 New Year’s Resolution Ideas And How To Achieve Each Of Them 8 Fun and Unique Birthday Party Ideas for People in Their 20s 50 Cleaning Hacks for Your Home That Will Make Your Life Easier 9 Unexpected Benefits Of Foot Massage That Make You Want To Have One Now

Trending in Money

1 10 Reasons Why Following Your Passion Is More Important Than Money 2 How to Pay off Debt Fast Using the Stack Method (A Step-By-Step Guide) 3 9 Millionaire Success Habits That Will Inspire Your Life 4 How to Set Financial Goals and Actually Meet Them 5 How to Develop a Millionaire Mindset in 6 Simple Steps

Read Next

Advertising
Advertising
Advertising

Last Updated on June 1, 2020

10 Reasons Why Following Your Passion Is More Important Than Money

10 Reasons Why Following Your Passion Is More Important Than Money

Elite Daily have got some great points as to why you should chase down your dream job, regardless of how much the wage is. If you’re feeling unfulfilled in your career, maybe it’s because you’re on a path that doesn’t connect with your passion? Maybe it’s time to steer right off that road and take a different route:

Money is a very powerful thing, it builds empires and breaks down kingdoms, it allows for dreams to come true and it takes others away, it makes some people happy and others completely miserable. Today the pursuit of money is almost directly linked to the pursuit of happiness, many will argue that money = happiness.

However, this is inherently problematic as this mindset leads many people to stray down a path that doesn’t best suit them. When people choose their careers, they are sometimes blinded by money and so choose to follow the paper trail. Although money is great and can buy us all the things that will temporarily make us happy, no amount of money can buy time. Time is our most valuable asset and it is something, that while on this earth, we should spend most wisely. You shouldn’t feel like you’re mindlessly wasting your life away

This generation is particularly in trouble because jobs are scarce and many of us will be stuck doing jobs we hate just because we need money. Although this may be the right move for our careers now, this shouldn’t be something we do for the rest of our lives. it is best we search for something we are passionate about. Here are the 10 reasons why you should follow your passion and not the money.

Advertising

1. Working for money may seem like good enough motivation for one to keep at their career.

Every morning Monday through Friday you go to work 9 to 5 sitting their punching away the hours stressing about the work at hand. This is not a way to enjoy your life. Working for 8 hours a day 5 times a week at something that makes you miserable is not the way you live life to the fullest.

Many people who choose careers that don’t make them happy will tell you that they would all do it differently if they had the chance. You only have one life, so don’t waste it working somewhere you hate just because of the money.

2. You’re more passionate about the work you are doing.

There is nothing worse than having to wake up every morning during the week to mindlessly go do work you don’t even care about. However, this is never really an issue when you are passionate about the work you do. If you are not forced to work somewhere because of monetary constraint, you truly enjoy what you do and you never really work a day in your life.

3. You can relate more to the work and come up with better ideas.

Being forced to do work is one of the most draining experiences. While there are times at every job where you may feel the work may be draining and dull, you have to realize that not every day is going to be an enjoyable one. There are highs and lows, but when you are passionate about the work you you look past the dull days. Your creative process is also different. You are more inclined to come up with creative ideas when you like what you do.

Advertising

4. Work doesn’t feel like it’s forced upon you.

When you value money over your overall health and your passion, you will find yourself in an endless cycle of misery. Work no longer becomes a career or a journey, but more of a  taxing nuisance on your mind and body that has to get done.

Every day that you go to work with this mindset you begin to hate your job more and more. While many people feel that they must work hard to retire and have money to enjoy themselves, what’s the point of enjoying yourself in your later years when you spent your life being miserable?

5. No matter how much money you make, nothing will help you overcome the feeling of doing something you hate.

Many accountants come into corporate America, put in reckless hours during the week and make a great paycheck on pay day. Many of them have all this money piled up, but they never really get to enjoy the fruits of their labor because their labor takes up most of their lives.

Many of them hate their jobs because they aren’t really passionate about what they do. Is there a worse feeling than doing something you hate? Eventually this hatred will cause stress and in the long run, it will have lasting effects on your health.

Advertising

6. You are more inclined to work later hours.

When you work somewhere that you are passionate about, putting in later hours isn’t as much of a burden as it is when you don’t like what you are doing. To you, putting in the extra hours doesn’t hurt as much because you don’t feel like you are forced to do it, which makes the experience that much more enjoyable.

Every industry has a busy season and without a doubt there will come a time when you will need to put in the extra hours. Will it be easier for you to work longer on something you can relate to or something you can’t stand doing?

7.You are willing to go above and beyond the call of duty.

Certain obligations at your work will require you to go above and beyond the call of duty. In certain times during the busy seasons, you may be asked to do certain tasks that are not part of your everyday schedule. It is much easier for you to put in the extra work if it’s something you actually care about. Because you are passionate about your job, you will be willing to put in the extra effort to go beyond what is required of you.

8. No obstacle will stop you from achieving success.

When you really enjoy what you do, nothing will stop you from getting your work done. Because you are passionate about what you do, you feel unstoppable and nothing can obstruct you from achieving greatness. Your passion ignites your work, and like a rocket, it accelerates you past road blocks that may come about. Any obstacle that comes your way is accepted and fought off with a creative solution.

Advertising

9. Our working careers will consume most of our lives, so we might as well do something we enjoy.

You will spend a majority of your life working and there is no other way around this fact unless you are born into a wealthy family or marry rich. For the rest of us who weren’t fortunate enough, we will be spending a good portion of our lives working in order to make ends meet.

There is no way around this, so we might as well accept the cards we are dealt. Many people go about this the wrong way because they feel like work is something they have to do rather then something they can enjoy. Once you realize that your career should be something you enjoy, then you will lead a more happy and fulfilling life.

10. You will get more fulfillment when you finally make it.

There are few feelings better than achieving a level of success you set out for yourself. Nothing like crossing off your bucket list of goals you set out for yourself to achieve. When you finally reach the pinnacle, it is that much more enjoyable knowing you got there doing something you love. Remember work doesn’t have to be something that you hate doing, stay true to yourself and always do what makes you happy.

The 10 Reasons You Should Follow Your Passion And Not The Money | Elite Daily

Featured photo credit: Randalyn Hill via unsplash.com

Read Next