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Good day every one,

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 help you make sensible decisions about your money in helping you achieve your goals.  It helps you pay off debts, bills,plan for vacation and so on. For salary earners like me every of your money should be accounted for by you and for you. You should be able to know what each penny was used for. When you are able to give account of every thing you do with your money then you are ready to take a bigger step in life. Its all about taking responsibility of every action you take in life as stated in one of my posts (TAKING RESPONSIBILITY).

As a salary earner I don't receive my next salary with out a budget for the month. I make sure I write down all I need to do financially  in order of priority to the very least. My tithe of cos is the first thing I take off my pay. As a christian its good to never joke with paying your tithe.
Budgeting should of cos include savings. In your planning also plan to save some cash cos you never know when your savings will come in handy. You don't just spend every penny on you. Aside savings also keep some cash with you that can come in handy any time, such cash is usually for some unforeseen expenses. The truth is even when you plan your finance so well unforeseen expenses always crop up.

There are short term, midterm and long term goals one should always have in life. Your short term goals financially could be your immediate needs within a month or in between months, mid term goals could be what you want to achieve within a year or in two years like getting a particular car for yourself and at such you start saving may be a particular amount monthly or daily according to your income while your long term goal be could something you want to achieve within three to five years like owning a house.

For mid term and long term goals it takes care full planning to achieve and this is made possible after a careful survey in cost implication of what you want within the time frame of your set goal.

Before I stop for the day I would like to let you know one vital key in helping you achieve your financial plan and that is DISCIPLINE. Be disciplined in your finances by staying true to your budget. Follow your budget as planned and thoroughly. You go a long way and achieve a lot being disciplined with your finances. Avoid unnecessary spending.

Quote for the day-"Beware of little expenses. A small leak will sink a great ship."Benjamin Franklin

Share your thoughts and lets talk more.

Your life coach

Rhoda Amapakabo

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