Let’s get started with the foundation of decision making; the one-page financial plan.
First: A budget is a spending guideline. It is your commitment to the life you enjoy living by spending your money with an intention. Spending requires income which becomes the next big step for a successful plan; how much income do I need?
Second: The Emergency Fund or also known as unplanned expenses. You can see the recurring bills like a mortgage or car payment. These expenses are consistent in nature and any changes are reasonable to adjust to. Example: the electricity bill the cost per month does not stay the same due to use and weather; however you have committed to pay the bill as part of your monthly budget. The more difficult expenses are the ones that happen occasionally and typically without warning. Example: the transmission fails on you car during a vacation. Where does this cost get paid from? If you do not fund an Emergency Fund on a regular basis the most likely tool will be a credit card. Will you be able to pay the entire credit card balance in 30 days? If yes is the answer you are equipped well, if you end up making payments that will increase the ultimate cost substantially.
This is the starting ground for financial planning. The detail you will need for a successful plan is unique and extensive. If you are interested in designing a successful plan that lasts your lifelong then you are invited to subscribe annually to the Season 59 game plan newsletter. Please fill out a contact request on this website.
Let’s GO!