Website design By BotEap.comLike everything in life, you need a plan to succeed. That goes for your personal finances too. No one is completely financially secure unless they have accumulated millions of dollars and decide to live off the savings for the rest of their lives.

Website design By BotEap.comUnfortunately, most people are not ready for retirement. Financial planning is crucial to reaching your goals of retiring comfortably. But having said that, how do you go about writing a financial plan without any formal education?

Website design By BotEap.comBelow is a quick step-by-step guide to writing your own financial plan. Of course, a professional financial planner can provide you with a more comprehensive financial plan, but this will go a long way toward understanding your needs and removing some obstacles.

Website design By BotEap.com1. What are your goals?

Website design By BotEap.comDon’t be afraid to dream, you only live once. Think about the size of the house, education, your family, etc. Just write down these thoughts about how you want the future to be. Once you list your ideals, remember to keep in mind global issues like children’s education, insurance, etc.

Website design By BotEap.comYour goals should include:

Website design By BotEap.com* Education. Regardless of your age, additional education and training is needed, whether for a career change or self-improvement. Many people take college courses (even with teenagers) or upgrade to an MBA to move up the corporate ladder. Even if a college education is out of reach, you still need to plan for your kids’ college degree, unless you intend to leave them to their own devices.

Website design By BotEap.com* Career. In which field do you want to work? Is it a creative job or a typical 9-5? Or do you want to be your own boss? Do you want to create multiple sources of passive income?

Website design By BotEap.com* Lifestyle. Is work or family more important? Are you pleased with a “simpler life”? Do you want a Porsche or BMW? Do you want to live in a mansion, a house facing the sea, etc? Do you have expensive hobbies in the golf life? All of these cost money, so you need to tabulate your expenses and compare them to your income to achieve your lifestyle goals.

Website design By BotEap.com* Withdrawal. Don’t forget about retirement. It is a time when you lose your income. So how do you want to live while you’re retired? Will you downgrade your home, live with your kids, or move to a retirement community?

Website design By BotEap.com* Sure. Nothing is certain in life. You need to be insured for worst case scenarios. Every financial plan should have provisions for insurance.

Website design By BotEap.comThese goals may seem daunting, but they don’t have to be wishful thinking. The actual money set aside could be much less than you think, if it comes down to effective financial planning.

Website design By BotEap.com2. Plan your income

Website design By BotEap.comOf course, your financial plan isn’t just about your dreams. How are you going to pay for it? I guess you don’t have a sugar daddy, so you should be pursuing a lifetime of employment. Most people have their career path marked out in this format: go to college, get a job, work hard to get promoted, and retire.

Website design By BotEap.comThere is nothing wrong with the breed, except that there is great uncertainty in today’s globalized environment. People change jobs all the time due to layoffs or to look for new challenges.

Website design By BotEap.comInstead of a day job, you might consider starting a business or becoming a freelancer to sell your skills. Business isn’t just for those with money, MBAs, or connections. You can start a lawn care home business, make money online with a website, or a vending machine business.

Website design By BotEap.comIn addition to becoming your own boss, you can find other income through network marketing or investing.

Investing is efficient for generating secondary income, as it simply increases the money you already have. You can buy gold, stocks, bonds, real estate, etc.

Website design By BotEap.comRegardless of whether you are a business owner or an employee, you should not let your money sit idle under your mattress. Even putting your money in an online savings account is more profitable.

Website design By BotEap.com3. Writing your financial plan

Website design By BotEap.comAt its core, a financial plan is a lifetime budget. You’ll be budgeting not just for your next paycheck, but for your entire life. Planning involves knowing how you will get there and when you will get there. There are no hard and fast rules.

Website design By BotEap.comYou have to be rational enough to assess your current situation, creative enough to see what is possible, and have the integrity to follow through with the plan. Remember, just because it’s on paper doesn’t mean it will happen – you have to decide to go ahead and meet your goals.

Website design By BotEap.comStart by doing the following:

Website design By BotEap.com* Timeline. Establish where you want to be in five years? Ten? Thirty? Fifty?

Website design By BotEap.com* Research costs needed. Your current “bills” plus 5% annual inflation. Don’t forget to factor in life insurance, health insurance, auto insurance, etc.

Website design By BotEap.com* Research luxury costs. What do you want to do. Cruise ships, nice cars, nice houses, etc.

Website design By BotEap.com* Income strategy plan. For most people, they start with wages. But don’t forget that your job is not your only source of income. Starting a side business, a hobby to earn money, or even earning money online are viable options for additional income.

Website design By BotEap.com* Investment plan. Investing is simply a necessity to counter inflation. You can invest in anything. Just make sure you know what you’re doing and don’t put all your eggs in one basket. As you get older, financial security should become increasingly important.

Website design By BotEap.comTry to take into account all possible costs and income. Whenever you’re not sure of the numbers, be conservative. Also, keep in mind that a financial plan is ALWAYS about your goals. It’s not just about money, it’s about getting what you want out of life. Money is just the tool.