One Year Plan to Financial Health

Creating a financial plan is a necessary tool in planning for a successful future. The first step is to create a rough outline of what your end goals are and a few targets to get there along the way. The following are a few things you need to keep in mind when drafting your first outline.

First, you need to gather your monthly bills such as; credit cards, cell/home phone bill, cable/satellite, insurances, mortgage and utilities. These bills are necessary as they keep your home running and your credit score inline Secondly, determine what weekly/monthly expenses are necessary such as; gas, groceries, and janitorial supplies and daycare if applicable. The last set of expenses come from luxuries; cigarettes, alcohol, dining out and shopping trips to the mall.

Necessary Evils

If you are a home owner, you need to consider yearly upkeep. This includes yard, paint and general maintenance. One cannot live to pay bills alone so there will hopefully be a planned vacation or two as well.

Depending upon where you live in the country will also determine the types and amount of car repair and upkeep necessary. If you live in the Northeast, for example there will be salt deterioration, chances for accidents on the icy roads, pothole damage and in the spring, the required interior detailing.

A great idea would be set aside some money each week into a savings account to assist in payment of unexpected occurrences. Think of it as a Christmas club savings account.

Setting Targets and Goals

You may wish to set a few initial targets as quarterly goals. Make it realistic. First determine what will best fit your lifestyle and bill paying habits. Many have found that dedicating a single day to pay all household bills has worked best for them. Choose the first of the month, for example. You may have some bills due on the 25th and some on the following 5th of the next month etc. Try paying the earlier a few days late (within the grace period most companies allow to avoid fees) and a few days or even weeks early for the next month’s bills.)

This method of bill paying will create a solid structure, one that will become a valuable tool in the future when disciple will play a role in continuing your achieved financial goals.

No Need for Baloney

Write it all down, every last cent you spend. Create categories such as food, house expense and especially luxuries. Much like when you are trying to eat healthy, writing down what and how much you eat, will make you very aware where a cut can and should be made. Attach dining out receipts each week to your plan. Most find, upon review of receipts, that the extra glass of wine, appetizer and even desert wasn’t needed.

Look for family style dining options. In this economy many restaurants are offering fixe prix meals, where the total price is set which usually includes appetizer, salad, meal, desert and even a glass of wine. Many fixe prix average $19.99 per person and usually are a great bargain compared the prices you probably paid at prior dinners out.

A Cut above the Rest

Buying higher quality meats in bulk vs. the quick trip to the supermarket can reduce the amount of money spent and raise the quality of your families’ meal. Portion control will allow you a healthier lifestyle as well create the every famous “leftover lunch” the next day. Creating a second meal can dramatically save you the expense of lunches out.

Fine-tuning your draft to cater to your individual lifestyle is a key factor to success. Maybe coupon clipping isn’t for you for no one can dispute a glance at the free market circulars for sale items is a waste. Plan your shopping at two markets, if convenient. Planning out meals for the week will also give you control of what money you will spend on food.

If space allows, stock up on some staple bulk items your family uses. Canned goods work especially well for this. By taking control of your expenses, you take control of many aspects of your life. Keep it going, make it a successful “life plan” vs. one year.

Tim Iandoli is a promising new freelance writer. He writes about personal finance, insurance, travel, food, wine and self-improvement. He’s a master problem solver, restaurant critic, entrepreneur and all around fabulous guy.

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Tags: Financial, Financial Health   Posted in Debt Consolidation Online