How to draw up a personal financial strategy?
Each of us may have different financial goals:
- Make savings.
- Earn money, a certain amount of them.
- Accumulate a certain amount that you need to direct to achieve some goal.
- Pay off your debts and obligations, and others.
Everyone has their own goal and it can be very different from the goals of even the closest person.
And in order to achieve your goal, the strategy for achieving it can be different.
1 I will work three jobs and get paid in every possible way in order to earn a certain amount of money. After I earn them, I will pay off all my debts at once and reward myself with the purchase of the desired thing.
2 I will work hard where I am now and learn to control my spending so that I can build savings.
3 I will set aside one third of all my cash receipts to pay off my debts. The rest of the money I will distribute to ensure my life. After I pay off all debts, I will save one tenth for savings, and I will direct the released part to my financial development.
Strategies can be very different. They will all eventually lead to the goal, but the paths will be different.
How to choose your financial strategy
Among those goals that you have set for yourself, you need to choose the main one and determine the strongest motivation to achieve it.
For some, it will be getting rid of the burden of debt, because it will give a sense of freedom and relieve emotional stress.
For some, this is the desire to earn money, because it will give a sense of their strength, power, ability to take and give a taste of life.
The primary motivation is so strong that it can help solve secondary goals automatically, along the way. You just need to find it correctly, define it.
How to write a financial strategy
You need to determine how you will manage your money.
When drawing up your financial strategy, pay attention to three areas of the money cycle.
1️⃣ Getting money. How and how much do you want to receive. On what principle will you act in this part.
2️⃣ Preservation and accumulation. Why and how much do you want to save. What do you want to use this money for? How much money will you allocate for savings. On what basis will you form this part. How much will you send to return debts.
3️⃣ Use of money. How and how much you will spend, use. What are the main expenses you want to make.
4️⃣ How much will you spend your money. On what basis will you determine the amount of money to use.
The financial strategy needs to be written down. It’s good if you say it out loud. By doing this, you manifest your intention and strengthen it in your consciousness. Listen to yourself as you speak your strategy. You may want to change your plan.