“Nothing on earth can stand in the way of a PLAN, backed by persistence and determination”.
We all want to live a comfortable life, be better, have better things. But, as someone said once: “The good life is expensive”. That is where the money comes in. Money is an amazing tool that allows us to live the way we WANT TO LIVE, and that is all there is to Money. If we understand the place of money in our lives and how money can work for us, we can make better decisions, we can live better. Ultimately, we can have peace of mind when it comes to our finance life.
Bob Proctor, well stated: “A person is living a balanced life when they are spending their days doing what they love to do and at the same time, they earn the amount of money they NEED to provide the things they WANT, to live the way they CHOOSE.”
To be able to live the way you WANT TO LIVE, you need to know how to earn more money, manage your finance properly, maximize opportunities, and above all work in your money mindset. You need to have a Personal Finance Plan.
Why Personal Finance Planning
By definition, Personal Finance Planning is a process where you look into your current finance status and make a plan to maximize the existing financial resources through proper finance management in order to achieve your finance goals.
Undoubtedly, Personal Finance Planning is key when it comes to achieve your financial goals, being it to be more in control of your finance on a daily basis, improve your finance health or work in your financial freedom goal. Whatever the case may be, you must be financially responsible to live a happy financial life.
The ultimately reason for finance planning is to ensure you can live the lifestyle you want to live, now, and have more than enough to have a peaceful and finance free retirement. It goes from ensure you are living within your income – and not spend more than what you earn; save for emergencies; as well as growing your money to your future life. With a realistic finance planning, you can track how much you earn and where you are spending too much money for timely refocus. It can create extra money for you to use on other important things instead of spending it on things you do not even remember buying.
Finance planning helps you and your family to focus on common goals, unifying the family in the effort and mutual purpose towards a successful outcome and reward. In addition to that, it also assists you to prepare for emergencies or unforeseen expenses that might otherwise knock you for loop finance. Overall, a finance plan lets you control your money instead of your money controlling you. You must be financially responsible to live a happy financial life.
Personal Finance Master Plan
Undoubtedly, Personal Finance Plan is key when it comes to achieve your financial goals, being it to be more in control of your finance on a daily basis, improve your finance health or work in your financial freedom goal. Whatever the case may be, it requires looking at your current finance situation and create a strategy attached to a solid action plan to achieve your finance goals, while working in your money mindset.
Printable planners are a great tool when it comes to Personal Finance Plan as they can guide you through this journey. There are many options out there, but a good Personal Finance Plan should include a set of plan/worksheet that has everything you need to plan your finance life and achieve the results you want. It should include:
Budgeting is the first step when starting looking into you finance life. Simply putting, budgeting is a financial analysis and a true reflection of your circumstance in terms of revenue and expenses over a period. Usually, it is done for a month or a year. However, it is something that you would like to revisit it often.
It can be a life and money saver, and a reality check that tells a true story about your finance health. It is something that everybody should do, independent on how big their bank account is.
However, despite of this simplicity few people really take it serious, as it requires effort and self-discipline. That’s why techniques like automated budget and envelope system can help, but before doing that you need to analyze and understand you current spending habits, track your expenses, analyze your results. Once you have done it for at least 3 months and have a clear understanding of your budget, then you can use those techniques. I believe these are the best ways to control your budget, savings and investments. It is easy to control and you see the results immediately. Basically, with a budget planner you will:
- Define you finance goal
- Know where you are spending your money – money spending habits
- Know how much your expenses represents in relation to your overall income
- Have an overview or your finance health
- Improve your budget and automate it with a monthly assessment
Finance planning is a straightforward technique yet extremely useful to manage individual’s or family’s finance. A robust Finance Planning can be created by following the 5 steps below:
- Assess Current Situation: Determine your current financial situation is critical if you want to change your finance. What is your monthly income? Where are you spending your money? What are your money habits? Are you saving enough money for emergencies, retirement, etc?
- Define Finance Goal: What do you want your finance life to be? What do you want to achieve in terms of finance? Be realist.
- Define a Finance Plan: Create and implement a finance plan, assess your risks, define an investment strategy, evaluate alternatives, determine action you need to take on a daily basis to achieve your goal.
- Track Progress: Evaluate your progress. Are you on track to achieve your goal? If not what changes do you need to make?
- Revise the Plan: Re-evaluate and revise your plan regularly. There is always room for improvement.
Create a 3 months finance plan to achieve your finance goal, track your progress and assess your performance (where are you spending your money? Are you saving enough? Etc). It will give you a good overview how your finance life look like at the moment. Review it, adjust it, improve it, and then, when you ready automate it and have better control over your money.
Plan to Wealth
It is not enough to have a budget or finance plan, if you want to really grow your money you must have a personal plan to generate wealth, backed by solid actions to achieve it.
A Plan to Wealth is a very simple tool to help you to assess where you currently stand in relation to you finance – income, expenses, liabilities and investments while assisting you to create a plan to build your wealth, that will allow you to live the way you want to live.
The process is simple, and it is common sense by now:
- Make Money
- Save Money
- Invest Money
Finance Freedom Plan
Finance Freedom is the status of having enough income to live the lifestyle you desire without having to work or rely on others for money, which basically means, have passive income greater than your expenses.
In other words, finance freedom means to live the way you want to live, do what you want (within your budget), without worrying about financial consequences. Finance Freedom means choice. Finance Freedom means work because you want to not because you have to.
The concept is simple. The idea is fascinating. However, the reality is, Finance Freedom sounds more like a nice dream for most of the people. Why? Despite all books out there teaching you how to achieve Finance Freedom, to apply the concept is not easy, it requires effort and self-discipline. It requires planning and the right tools to help and support you to define your finance freedom goal, create a solid strategic plan to achieve it, while working in your money mindset.
Certainly, our beliefs, thoughts and words play huge part in the results we are getting in life, including our financial results. If you want to have better finance results, start looking at your money mindset. But what is it?
Money mindset is nothing, but your set of beliefs you have about money, which are thoughts you consider true, and that drives your relationship with your money, the way you earn, save, spend and deal with money every day. Are you always worried about money, or lack of money? When buy things you always choose the cheapest products? Are you always in debt? Spending more than you earn? Do you think money is difficult to earn? Do you think you don’t deserve to be rich? And the list goes on and on.
A positive and abundant money mindset means you consider money as a way to achieve your dreams and goals; you understand that money is an essential tool, and absolutely important to live a fulfilled life. You are grateful for all the money you have in your life and for all the good you can do with money as the more money you have the more good you can do to yourself, your family, to the world.
The good thing is that we can change our money mindset by identifying your current beliefs, create new ones, and impress them in your subconscious mind, so that you can get the finance results you want and deserve.
This is an extensive topic, but hope the above gave you a basic understanding of why you should be looking into plan your finance life, benefits and how Finance printables can help you.
If you are serious about changing your finance life, really take some time looking at your finance life, define your goals, create a plan, then follow it. If you do so, you are taking the first step towards a better finance life. However, it is important to say that printable & planners will give you the tools, but it will not bring any result if you are not committed to put the work, take actions, and have the right mindset in relation to money. Take this serious and start to change your finance life to live the WAY YOU WANT TO LIVE.
Financial Disclaimer: I’m not a finance advisor/life coach. The content presented in this post and printables suggested are based on my opinion and experience and it is for informational purpose only. I am not responsible for any result related to the use/application of this material as it shouldn’t be considered professional financial advice. So use it wisely and make your own decisions.