The State of Your Financial Planning

Everyone has a way they go about budgeting and spending their money. The problem for most people that seem to have out of control finances is that they are not doing as good a job as they may think. Financial planning comes in many forms, from planning for retirement or to pay for education for children - down to making sure you have enough money each month to pay the bills. If you are living in a state of chaos with your finances, it might be time to take a step back to see where your money is really going and how to settle the waters for better financial security.

Financial planning should always begin with the present. You should know what you want in the future, but take care of what you want right now, and what your problems may be. If you are not paying your bills on time, or at all, that is your main and current concern. You have to break down every single thing that you spend to see where your money is really going. Write down each and every thing you spend, even if it is only twenty cents, and then make a tally of each at the end of the month. Any wasted money should be apparent after just one or two months of doing this.

Once you know where you are bleeding money, you can do some financial planning to get things straightened out in the present. Anything extra that you can find in your budget should be put away. Put the money in a savings account and turn down the ATM card. If you have access to this money you may spend it, Make it as hard as possible to get to it and you may just leave it alone. If you are steadily putting money away and paying your current bills on time, you can then move on to more long term financial planning.

If you are married, sit down with your spouse and talk about financial planning for the future. If you are single, you can obviously do this on your own. What you want to do is to think about the things you have to pay for and the things that you want to pay for. You can then come up with a savings plan that can help you work towards those goals. Look over what you are putting into your 401k, if you have one, and talk to someone at your bank about making the most of your savings with higher interest earning accounts. Remember that some of these are not insured by the FDIC, so find out when you choose.

Some people find that financial planning is something that is way over their heads and they are not sure what to do to get where they want to be in the near and far future. The best way to get around this is to find someone who does financial planning and ask them for help. There is usually a fee involved, but the fee is well worth it if you get what you want and if you learn how to really put your money to work for you and your future. They can help you set realistic goals, and tell you how to overcome shortcomings in your budget. Your money should be working for you, so show it that you are the boss.

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