5 steps to kick-start own financial plan

Start your own financial plan today and reach your future goals.

11:38 11 May 2013

With so many companies having to cut back on their staffing, it’s important for families and individuals to have a clear financial plan for the future. There are certain signs that the economy is struggling to recover, but the process is long and unexpected changes can result in more setbacks.

 

Nationwide and Honda both just had to release employees, and chances are other companies may have to follow suit in order to remain in business for the long haul. Having a clear financial plan enables people to try and weather the difficulties that may arise.

 

• Consider income—if there are two incomes in the family; try to pare down expenses so that you could live on the lower of the two incomes. If someone loses their job, you won’t immediately be in trouble if you’ve budgeted to live within just one income. It’ll save you stress and buy you the time you need to go job seeking.

 

• Establish savings—if you cut out a few extras in your budget, funnel those funds into a savings account, whether it is an ISA that will earn better interest, or a regular savings account that will let you access your funds whenever you need them.

 

• Pay off debts—after you’ve made some surplus in your budget, make payments on your debts, even if you have to try and pay off one bill at a time.

 

• Spending money—if you want to stick to your financial plan, you will probably need to give yourself an allowance. If you can’t afford to do it on a weekly basis, see if you can work something smaller into your budget on a monthly basis. It could be ordering a pizza, getting a pastry, or going on a day trip.

 

• Future—doesn’t forget to include the future in your financial plan. If you want to go to university, you have children, or want a home work those goals into your plan so you know how you’re going to achieve them.