Keys To Financial Planning – A Newbie Guide to Allocation of Your Hard Earned Money
What are the keys to financial planning a newbie at work should know? Do not squander away your hard earned money. Do not think you are young hence you have a lot of time to save for your retirement and that dream home.
Money does not work that way. It has its own set of rules and if you do not obey it, you will pay for it in double. What are some of the keys to good financial planning?
1. Pay Yourself First
This to me is one of the best keys to financial planning. It has served me very well. Pay yourself first. If you have not heard of the concept, learn it and internalize it. It basically means when you get your pay, put some aside for yourself immediately. Better yet, siphon it to an account where withdrawing is tough. Almost always you will still have money to take care of other bills when you pay yourself first. This money is for a rainy day, emergency cash and cash for investment opportunities that may crop up.
2. Living Expenses
You can then start to pay off all your living expenses bills. There are the cell phone, rent, student loan, car loans, utilities bill, etc. to pay off. Of course the grocery bills and transportation costs. I like to keep leisure out of these living expenses because to me these are priorities, if these aren’t taken care of, it can lead to debt accumulation. Especially paying off loan installments where interest can compound one month after another.
3. Save for the Future
Under save for the future, lump the desired lifestyle you want for your family in here. It means taking into account what you want for your future. Is it a house, paying for your children's education, etc?. Financial freedom starts when you know how to manage your money. Think about investments in this category. You do not just save this money in the bank, you use it to invest in order to hedge against inflation and also to grow your money. This is an important part of keys to financial planning as it helps grow the money. Inflation is a money virus that will shrink the value of your money. Use investment as an antidote for this.
4. Personal Development
You need to continually improve yourself. I know at a young age you may not think about this too much. Start this habit early and allocate, even if it is a small sum for personal development. For example, something as simple as reading about managing money and investments. What about work related books to help you improve your work quality? All these go a long way in making you a better person.
5. Leisure
Of course, you must reward yourself. There is no sense in working so hard for the money but not being able to enjoy it. Use this pool of money in moderation though. Allocate some money for leisure - weekend breaks, movies, or even the yearly traveling.
6. Charity
You do not exist in this world alone. You need to know you are truly blessed and one way to show gratitude is to contribute the money you have earned. Rich are those who can give, for one who is poor has nothing to give. Of course, for the purpose of this article I am talking about giving money, but you can go beyond that like giving your time and energy.
The keys to financial planning aren’t all about investments and saving, it includes fun and taking care of others as well. Do not be afraid to ask questions and read more about financial planning. The earlier you plan the better it will be for you.
Can I recommend this? Invest in a copy of 101 Great Ways to Enhance Your Career. I am a contributing author together with the world's 100 other career experts. It will help you answer a lot of career questions you have and make a great gift for yourself or your colleague. Check it out here.
| More Articles Related to Keys To Financial Planning |
Importance of Financial Planning for Fresh Graduates Starting On Their First Jobs
The importance of financial planning is a key component you must understand as you begin your career.
Managing Your Personal Finances For Career Newbies : 5 Steps Towards To Personal Financial Fitness and Independence
Managing your personal finances is crucial as a career newbie. Here's how to attain personal financial fitness to be financially independent in the future.
Secrets To Successful Investing – A Newbie’s Guide
As you begin to collect your first paycheck you may want to start to save and even start thinking about investing. Here are 6 basic tips to successful investing.
Tips On How To Save Money The Easy Way
Saving money seems impossible, especially at entry-level pay. Well, it isn't. Here are some tips on how to save money.
Wealth Secret For Career Builder Newbies
You will be looking for your wealth secret shortly after you started work. Let me share with you my wealth secret.
For more articles related to "Keys to Financial Planning", click here.
101 Great Ways to Enhance Your Career
3 years ago, I was invited to participate as a contributing author together with 100 other career experts to create a book called 101 Great Ways to Enhance Your Career. In my chapter, Work Attitude, I discuss how you need to define your attitude at work as critical step to career success. You will be getting career advice up close an personal from some of the best people in their fields like Brian Tracy.
101 Great Ways to Enhance your Career Today!
Over 100 of the World's Leading Career Experts have joined together to give you the complete collection of 101 insider secrets that show you how to instantly and positively enhance your career! In this new book, experts including Tory Johnson, Laura DeCarlo, Brian Tracy, Charlotte Weeks, Long Yun Siang will give you quick, simple and proven Career secrets. To learn more about this special offer go here: 101 Great Ways to Enhance your Career
Learn & Grow: Join Our Newsletter
What's Hot
Every month, we bring you new articles based topics suggested by you. We hope to be able to give you tips and suggestions, and provide answers to your questions that you will find helpful.
Being Happy at Work – 6 Tips to Be Happy at Work
Create Time – How To Get More Time In Your Day at the Office
Pursue Your Dreams – 7 Things to Keep in Mind and Do
Great Day at Work – How to Achieve a Happy Day at Work
Release Your Tension – How to Feel Relax Before Going to Work
Powerful Words That Keep You Motivated at Work
Start Here: The Newbies Guide
If you are new to this site and don't know where to start, start here by reading our most read articles.
Definition of Success?
How To Get Promoted
Define Your Attitude
Why Is Time Management Important?
Work Attitude Behavior & Work Behavior Attitude?
What Job Suits Me?
Attitude At Work: When People Don’t Like You
Positive Thinking In The Workplace
Personal Goal Setting
How To Find Your Dream Career
Positive Attitude in The Workplace
Define Leadership
How To Move Up The Corporate Ladder
Developing Leadership Skills At Work
Developing Positive Attitude At Work