Lesson 1: In our ongoing Wealth Wisdom video series, we’ll teach you financial fundamentals. In this first lesson, Bill Ray, a financial services expert with over 30 years experience, will teach you how to build savings and control your spending:
Here are the steps to begin financial planning described in the video:
- The first thing to consider in financial planning is, what is your monthly income (after taxes and paycheck deductions)?
- The second thing is to consider is, what is your monthly spending?
- To find this, record every one of your expenditures on a piece of paper or on your computer.
- All financial planning starts with, “Where am I today?” and “Where do I want to be in the future?”
- Savings = Income – Expenses
- Decide how much you want to save each month, and build a budget that allows it.
- Run the budget for 3 or 4 months and see how you’re doing.
- Now you can see if you’re spending more than you need to, or saving more than you need to.
Learn More: This is a good introduction to building a financial plan. To learn more, visit our section on Creating a Debt Reduction Plan.
Related posts:
