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Why Should I Generate A Financial Plan?
You say you know where your income will go and you don't need it all written down to maintain it? I issue you this test. Keep track of every penny you shell out for one month and I do mean every penny.
You will be shocked at what the itty-bitty payments mount up to. Take the total you spent on just one useless item for the month, times it by 12 for months each year and multiply the result by 5 to represent 5 years.
That is how much you could have retained AND drawn interest on in only five years. That, my friend, is the very reason all of us might need a spending plan.
If we can get a hold of of the small expenses that really don't matter to the full scheme of our daily lives, we can enjoy financial success.
The tiny things really do matter. Decreasing what you spend on lunch from five dollars a day to 3 dollars a day on every day at work in a five day work week saves $10 each week... $40 every month... $480 yearly... $2400 in five years... Plus interest.
See what I mean... It really IS the little things and you eat a noon-time meal everyday AND that was only one place to save money in your daily routine without getting rid of one thing you really will need. There are a lot of places to cut charges if you look for all of them.
Set some precise long term and short term goals. There are no wrong answers here. If it's necessary to you, then it's necessary period.
If you want to be able to make a partial payment on a house, start a college fund for your kids, buy a sports car, take a cruise to Aruba, invest in businesses going public, or even get involved in a public shell or shell companies... Anything... Then that is your goal and your reason to get a grip on your financial issue now.
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