You must have a complete picture of your personal financial situation before you can do financial planning. You can plan, but until you are in a positive funds flow, you cannot enact any of your designs.
So, the first thing to do is calculate your net funds flow. Total up all you owe, and all you earn. You can also calculate your funds via credit card payment calculator. For the “owe” column, include bills, upcoming expected expenses that you will have (like in case you are expecting a infant), and normal living expenses like food, gasoline, medical, and clothing expenses. For the “income” column, include all funds you expect to get (after taxes). Do these calculations either for a month or a year. In case you do it for a year, divide by 12 to get an average every month funds flow picture. One time you have your totals, deduct the expenses from the income totals. This is your net funds flow. If it is a and figure, you are above the line.
There are keys to FinLit financial planning, to start your engine of savings and financial success. Pick up any number of books on the subject and you will find savings tips. There’s a common threads on this line of thought, and here are the major “keys”.
Second of the keys to financial planning is to do some research before you try to invest your funds. A savings account may not pay much interest, but it is secure. Funds market funds are another place to add savings up. In case you play in the stock market, don’t think of it as play. It is serious business; you need to learn how to work it. Don’t count on the casino slots! Learn to take care of your funds. Possibly the best investment now is a house. Look around to see your options.
If it is a negative figure, you are below the line and need more income. In case you have a and figure, then you can do your financial planning. In case you have a negative figure, you must find ways to generate more income before you need to do planning. Obviously, everyone wishes to be in the and funds flow area and plan for getting extra funds out of life.