#Sample personal budget how to

I’ve gone over how to do this in more detail below.

To set your goals, I recommend breaking everything down into 1 year, 5 years, 10 years, 20 years & 30 years chunks of time. It is great to dream big and set a goal of putting $500 per month in your emergency fund, but if you don’t have the money in your budget, then you’ve just wasted a lot of time. Keep in mind that you will also want to have your budget ( I use a percentage-based budget) handy when you start setting goals. The trick is to make sure that you have the whole picture before you get started.įor example, if you don’t include all of your debt, then all of your numbers are going to be off. This is my favorite part of the whole process. Once you have reviewed your current situation it is time to set goals. I review my net worth, check on my debt and savings accounts and then use those numbers as my starting point. Once you have chosen the 5-10 areas you would like to concentrate your financial energy towards it is time to review your current situation and then set goals.Įvery year, I sit down and calculate my current value in each area. For example, if you have kids, you may want to include a section for college funds. Saving For Retirement – I use Top Return Financialĭepending on your goals, you may want to add additional areas to track.The Best Personal Financial Plans Focus On These Five Areas: I’ve designed my financial template to focus exclusively on the areas that will give you the most bang for your buck. Now my personal financial plan is super simple. When your financial plans are too complicated you lose focus and quite frankly, they just don’t happen. I used to do these long-complicated life plans that included every single aspect of my financial life. You don’t have to stop at the 5-year mark! It is simple enough to not overwhelm you, but it really helps you start thinking about your future. I know, it sounds kind of scary, but I’m going to walk you through writing a 5-year financial plan.Ī five-year financial plan is a great way to get started when you are doing your first financial plan. Having a personal financial plan will make all of this possible.

When you have an individual financial plan it helps keep you and your money organized.ĭo you dream of the day when you have enough money at the end of your paycheck to purchase that pair of shoes you’ve been eyeing? Do you dream a bit bigger and think about your actually adding money to your retirement account every month. Personal Financial Plan Template – How To Create A Personal Financial Plan:Īre you ready to make-over your financial future? The first step is to create a personal financial plan.įinancial plans are the key to being successful with your money. For your convenience, many of the products I link too are affiliate links which means I may earn money if you purchase a product I recommend.

Sample personal budget