Personal Finance Planning - the power of Accountability
When we talk about personal finance it requires some kind of planning. Personal finance deal with your net amount of monthly income, your outgoing expenditure, your savings and investment, any debt obligations you have made, the goals that you have to achieve with that finance either long term or short term and some other issues related to finance. When we talk about money or monetary issues it is very tactful thing to deal with and everyone don’t have ability to properly handle and make plans and to act upon those plans.
Personal finance deal with the meeting of your ongoing needs with the help of your monthly net income and also that how you can make saving rather than spending all as expenditure & utilize these resources to fulfill the future needs. With the help of personal finance planning you can detect that where your money is going, how you are making purchases and can also look that what are the extra areas on which you are making spending and how can save more money by reducing expense on those areas. This will help you to save more money.
Make budgetary sheets
Make spreadsheet of your monthly income and expense category wise and keep track of this so that you can come to know your monthly expenditure and incoming amount on real basis and can make realistic and tangible budget instead of just making it on imaginary basis which will help you in making proper finance planning. Adopt this practice for few months or a year so that then you can proper cultivate your financial goals on right path.
After making proper sheets and adding in them your monetary items each month also keep an eye on your budget to see how successfully you are moving and making progress. Make check and balance and solid evaluation that both the finance planning you are following and the budget you are recording is beneficial for you and giving you real fiscal progress.
On weekly or monthly basis you can determine how much you have move forward towards achieving your financial goals which can be long term or short term. Mostly a small step towards achieving your short term goals drag you towards the fulfillment of long term or mid-term goal and it act as milestone towards achieving the others. So make meetings and review your progress and savings on weekly basis to keep an eye on your budget and to cut off any additional expense. You can do it by yourself but can also take help in making evaluation from someone else. If you will indulge a second person then you may think yourself accountable to him and to avoid shame or embarrassment of not fulfilling of your goals you will not move outside of your plan. You may not include that person in making your financial planning or making map of that but you can make yourself just accountable to him that yeah you are properly acting upon your plan. You can ask that person to keep an eye and to hold you firmly in keeping you within the track you have adopted. That person will be responsible to analyze with you on monthly or weekly basis your progress and to escape the shame of being answerable you will avoid any out of range activities.
That person may not be a financial person or may not have proper accounting practices but that must be one who can influence you and have influencing power on you and to answer whom you consider yourself liable. So that must not be your spouse or other half.
After making evaluations and proper analysis you yourself can figure out your next month goals and plan out for that.
So by making yourself answerable and accountable to someone you can make incredible progress in your financial issues and can fulfill your goals much early.