Yusra3
Banned
When it comes to creating a 5-year financial plan, you've got a lot of options. You could do what most people do and just make a list of your goals and aspirations for the next five years. Or, you could take a more strategic approach and use a template to create your own personal financial plan.
If you've never done this before, then it might feel a little overwhelming at first. I know it's hard to think about all the different things that could happen in the next five years, let alone figure out how they'll affect your finances! But it doesn't have to be that way!
The best way to start is by thinking about how much money you want to save each month. If you're saving $100 per month right now, then that's great but if you want to save an extra $500 per month by retirement age (without taking any risks), then that's what your financial plan will focus on.
Once you have an idea of what kind of savings rate you'd like to achieve by retirement age (or whatever other milestone date feels right), it's time to sit down with pen and paper (or computer) and write down all the things that will happen over those five years. Make a list of all the things that matter to you now. What are your priorities? What are the things that make up your current lifestyle? Remember that this is just one piece of the puzzle; if these things aren't important to you, then maybe they don't deserve space on your list so cut them! Next, think about how much time and energy it takes each day (or week or month) for each thing on your list. Is it worth it?.
If you've never done this before, then it might feel a little overwhelming at first. I know it's hard to think about all the different things that could happen in the next five years, let alone figure out how they'll affect your finances! But it doesn't have to be that way!
The best way to start is by thinking about how much money you want to save each month. If you're saving $100 per month right now, then that's great but if you want to save an extra $500 per month by retirement age (without taking any risks), then that's what your financial plan will focus on.
Once you have an idea of what kind of savings rate you'd like to achieve by retirement age (or whatever other milestone date feels right), it's time to sit down with pen and paper (or computer) and write down all the things that will happen over those five years. Make a list of all the things that matter to you now. What are your priorities? What are the things that make up your current lifestyle? Remember that this is just one piece of the puzzle; if these things aren't important to you, then maybe they don't deserve space on your list so cut them! Next, think about how much time and energy it takes each day (or week or month) for each thing on your list. Is it worth it?.
