Last week I wrote on planning ahead. This week I would like to write on planning ahead financially. My focus its on individual financial planing.
A financial plan can be seen as "a comprehensive evaluation of an individual current pay and future financial state by using current known variables to predict future income,asset values and withdrawal plans." -Wikipedia.
The above definition says it well but its not going to be possible without a budget in place. A budget is putting your financial plans into writing in order of priority. you write what is more important or seems like an urgent need first followed by the next urgent need on ground and so on. A budget helps organize your finances and your spending goals. Budgeting helps you take the necessary steps in achieving your financial goals and some times in fact in most cases for retirement purposes.
A financial plan helps you determine where you are going with your money. It is an on going process to he…