1.0 Set your goal
-This will help you to determine where your money will come from and how your spending from your income.
-In you goal setup, saving for emergencies must be included as one of the top list item.
-Check assets and liability (debts)
checking the assets and debts really important for you to know how to keep track you own financial as will show the balance from your income.
2.0 Budgeting Basics
- to budget you own income, you need to follow the rules below discipline and it helps you to :-
- live within mothly income
- keep savings
- reach your financial goals
- prepare for emergencies
- prepare the budget at the beginning of the month
- must keep track the cash flow ( the actual spending- cash outflow)
- try no to use the Credit Card for payments as it use your future income for present
Therefore, if towards the end of the month you have a cash surplus (still have cash balance) in your hand, its a great starting but if cash deficit (you are owning someone else money or balance of credit card is unpaid) is not a good sign and need to look back your spending for the entire month.
3.0 Limits Within Your Means
- knowing your need (you must have it) and wants (you would like to have). Try to differentiate it correctly
- spending wisely (make a sensible purchasing choices to prevent from creating financial difficulties for yourself and others.
As conclusion, financial planning is very important as a passion should live within your means so that not ending at bankruptcy title. So beware.....
This is just a simple say...hope it will enlighten you for your financially...