Money Management 101

Written by Your Future Now
man-financial-planning

Getting, growing and keeping your money can be best achieved with financial planning. A financial plan helps you to stop making money mistakes. Financial planning is the process of structuring your financial resources* to meet your life goals. These can be short-term goals, such as saving for your children’s education or for a new car, or long-term goals, such as making provision for your retirement.

Examples of financial resources are:

  • Your salary
  • Other sources of income such as interest or rent
  • Your bank account
  • Access to credit

 

money-bag

Financial planning and money management are valuable tools because it:

  • Helps you decide how to spend your money.
  • Gives you the discipline you need to spend wisely and to save.
  • Helps to avoid money emergencies.
  • Helps you to stress less about money.
  • Makes your expectations more realistic.
  • Helps you to set measurable financial goals for your future.
  • Helps you to understand the impact of your money decisions.
  • Prompts you to re-look your position from time to time.
  • Most importantly, helps you realise that YOU are in charge of your financial health.

Before you start your financial plan, ask yourself these 4 questions:

  1. Am I ready to accept responsibility for changing my own financial position?
  2. Can I change my attitude towards money?
  3. Do I believe I can take the necessary steps to achieve financial wellness?
  4. Can I see the benefits of financial planning for my future?

If your answers are all ‘yes’, you are ready to start:

  • Get all your financial information together. This includes policies, contracts, bank accounts, and so on.
  • Do a financial health check-up to determine where you are at the moment.
  • Set goals for your life and agree them with your partner and family.
  • Come up with a plan for how you can achieve your goals.
  • Keep track of your progress.
  • Review your financial situation regularly and make changes to your plan if necessary.

You can do your financial planning on your own, or you can ask a professional person to help you. The important thing is to start.

Remember: the purpose of financial planning is to put you in a position where you can face any financial challenge that may come your way in future.

 

 

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