A FINANCIAL PLAN FOR LIFE
“If you aim at nothing – you’ll hit it every time” Zig Zigler
Here at Get Rich With Me – we think that you don’t build a house without a blueprint – so why do you think you can improve your financial health without a financial plan ?
Over the next few pages we are going to show you how to construct a spending and saving plan a financial plan or template which will help transform your finances, your future prosperity, strengthen your relationships and your health.
This isn’t going to be an arduous process – it’s not going to fry your brains.
We will just take lots of small steps, deconstruct your current financial situations and take a look at how we view, treat and value money.
Surprisingly, most people don’t look forwards to money instead we tend to look forwards to people, events, travel – things that mean something to us on a human rather than material level.
Many people find that having money and assets is hard work, and it can be stressful managing them. Thats why the majority of wealthy people still class their happiness as their most valuable asset.
Money can’t buy you happiness – but it can buy you the time to be happy – and time is our most finite resource.
A 7 Step Plan For Life
1. Write It Down. Get it down on paper – write down a list of your income, your household expenses, your debts. Treat your personal finances as though you were a corporation. I will show you how to write a personal business plan, and a personal balance sheet. If you’re serious about improving your finances you cannot skip doing this …… Here is a link to writing a personal balance sheet – and here is a link to a personal business plan. You can copy and amend these plans to suit your own personal circumstances.
2. Build An Emergency Fund of at least £1,000 or $1,500. An emergency fund is for those unexpected moments in life, you lose your job, a pipe bursts, your roof leaks or the gearbox on your car packs up. Its not as if something like this is never going to happen to you – its just a matter of what it is and when. By having a readily accessible emergency fund you have already planned for these life events, and it will prevent you from going into debt when having to deal with them……….. You can read more about setting up an emergency fund here…..
3. Cut Up Your Cards. If you have no consumer debt – congratulations – move on to step 4. If you have cards, loans and debts don’t worry you are not alone…
The first step towards getting out of consumer debt is easy – cut up your cards! Stop taking on more debt (this is where an emergency fund helps you). Second thing is to make a list of all your debts, and then rank them according to the interest rate you pay on them…… then pay off the minimum payment on all your debts apart from the one with the highest rate. Attack this debt. Throw every amount of spare cash you have at it. By getting rid of the debts with the highest interest first, you waste less money on interest payments in the long term. When you’re in debt. you’re nothing but a slave to the bank. That sucks. Being in debt sucks
We show you how you can get out of debt here…..
4. Build A Bigger Emergency Fund. Now that you’re debt free – put aside your spare cash into building a meaningful emergency fund. There is no set amount of what’s right. Some people are happy with 2 months income – some happier with 6 months expenditure and some happier with 12 months. There is no hard and fast rule as each of us has individual circumstances and needs. However, having the backing of at least 3 months expenses in reserve gives you great peace of mind. Here is some more information about building a meaningful emergency fund.
5. Protect. Now that you have protected yourself against sudden unexpected events by setting up an emergency fund – its now time to protect you and your family from lifes catastrophic events such as long term illness or the loss of a spouse or partner. We are not immortal – and we have a duty of responsibility to our partners and vice versa to protect each other from the early or unexpected death of either partner. Any financial plan worth its salt should recommend life cover. How long could you survive with the loss of an income in your household, or if all of a sudden you were the sole provider AND in charge of childcare?
In this pages we explain fully how life cover works, and how we can make it work for you at the most reasonable cost.
6. Start Saving In Your Pension. Now that you’re debt free its time to start building your future wealth. Check back to your personal financial plan and see how much you can allocate to your pension. Some people are happy with 10% of their income – others 15%. Does your employer match your pension payments ? Do you get tax relief on your pension payments? You could be giving up the chance of FREE MONEY ?……. Here are some more articles on pension saving.
7. Invest Invest Invest. Now that you’re debt free and have your pension under control you can now start investing any disposable income you might have left over. Time and compound interest are an investors best friend. By using sensible strategies you can use the stock market to help you build real wealth. Something you can use yourself, or pass on to your family and children.
8. Lead A Rich Life – Give Something Back! “All work and no play makes Jack a dull boy” Get involved in your community, get involved in a cause. If you’re leading a rich life, you can afford to give something back. Having wealth gives you the time to do this more effectively and to take more enjoyment from it. Or….. you might model yourself on Scrooge McDuck – if thats the case – you are beyond redemption. Stop reading – go – now – this screen will crash any second now – we don’t like your sort here.
I’m applying these principles to my life. I’ve shared everything with my wife and as a result we’re much stronger as a couple. Learn about money, learn about how to pay your bills on time, improve your credit score, learn to save, invest and become wealthy.
Its not rocket science – the knowledge part is easy – its the bit between our ears – our own personal hang ups which makes the wealth process difficult.
Conquering ourselves, our ingrained habits and attitudes towards money – thats the hard bit. If you’re interested about the psychology of money then we cover a whole lot of that too……..
Welcome to Get Rich With Me – we hope you do!