Monitoring and adapting personal financial plans (Attitudes to financial…
Monitoring and adapting personal financial plans
Attitudes to financial planning
What are your main needs and wants?
What is your attitude to spending?
What is your attitude to saving?
What is your attitude to borrowing and being in debt?
What are your aspirations?
What is your attitude to risk?
Steps involved in drawing up a budget
Identify and list all sources of income
Identify and list all items of expenditure
Decide on the time period that you will use in the cash flow chart
Fill in the figures for all the various income sources and types of expenditure in the cash flow chart
Now you can calculate the total income and total expenditure for each time period
A five-step cash-flow plan
Total income + total expenditure = surplus/deficit/balanced
Compile the cash-flow chart
Decide on the cash-flow planning time period
Identify items of expenditure
Identify sources of income
Monitoring your financial plans
It is vitally important that you monitor your financial plans to check how closely real life matches your income and expenditure forecasts as you live through the time period of your plan