| Being the best financial consultant of your personal budget, the first thing you need to do is set a 'Plan for your Budget'. There are hundreds of books about writing budget plans and maybe thousands of ways, but in short it is all about controlling your money flow by include things like your income and expenditure. However, there are a number of things yo need to consider while working on your budget plan and these are:
A. Do It Now Not Later. Start working on your plan now. Don't delay it and tell yourself that you are going to do it first thing tomorrow. You will never do it that way. Remember that delay is one of the most dangerous diseases of the man-kind since they resided on earth. Human-beings like delaying things that they delay repenting their sins and asking God for forgiveness until they depart from this temporary life and meet the Almighty God. They then will ask Him to be returned to the temporary life to do better. However, the Almighty will not give them this chance. Similarly, life will not give you the chance of becoming a better person if you kept delaying your financial plan. So, get up right away; bring your paper, calculator, pens, laptop, and bills; and start working on your plan. Now … means now … not after five minutes … not after you finish your dinner … not after you finish reading this book. NOW means NOW.
B. Don't Complicate Yourself. Make it simple. If you have read books, attended courses, or watched or listened to directions on how to write a plan for your personal finance, you must have been complicated with the sum of information you were given and things you were told to add and subtract. Dear reader, all that is crap. You don't need all those complicated steps and calculus to make a plan for your personal finance. All that you need are the following:
1. You need to know how much money you get weekly or monthly ... monthly is better. Don't leave anything out. Even if your spouse gives you a tiny share monthly that you don't consider that much … mention it. This is known as 'INCOME'.
2. You need to know how much you spend in the same period, i.e. weekly or monthly. Here also you need to mention everything you spend your money on even the things that you might consider tiny and harmless, such as, your child's pocket money. This section will include things, such as, utilities like telephone and TV cable, pocket money, household, loans' instalments, and transportation. This section of budget management is known as 'Monthly Recurring Expenditure'.
3. You need to identify the amount that you spend periodically but not monthly, such as, the things you pay once a year like licences and insurance. Identifying these in advance will help you plan for them enough time before they are due. This section is known as 'Periodically Recurring Expenditure'.
4. You need to identify the 'Dark Holes', i.e. where you put your money unnecessarily like when you spend money on gambling.
5. Finally, you need to write a Monthly Plan that shows you how much and when you get money; how much and when you spend it; and how much saving you can do- as illustrated below in Figure-1. That is the end of the first part … Bingo.
So, I Say No to financial experts and Yes to simple & free solutions.
What do You Say??!!
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