What is financial forecasting and what does it mean to you? It may be easier than you think.
Recently, “financial forecasting” has become an industry buzzword. It may sound different, but at the end of the day, it’s simply the use of sound financial principles and tracking to create a budget that allows you to start investing in your future. Here are the five steps to creating a sound budget that leaves money for you to invest.
Identify All Income
How much money do you make every month? Count your salary, monthly bonuses and any outside income from investments or other sources. To create a financial plan, you need to know what you are working with.
Identify All Expenses
Now that you know your income, you need to know your “outgo.” You can start with your mortgage payment, taxes, insurance, car loan, car insurance, credit cards, utilities, etc. Be sure to count everything.
Next, put all of your monthly expenses in order of priority. After the standard expenses, most people will then list food, entertainment and vacations.
Allocate Your Funds
After you know your expenses, it is time to allocate monthly funds for them. Then we are going to add two: savings and investments.
Bonus: The Sixth Step
When you are ready to get started, call us at Purely Finance. Our professional financial planners have years of industry experience and can help you come up with a firm plan for your future. Creating your budget is a great first step and involves a lot of “heavy lifting,” but it is just as important to invest the money you have earmarked for your future wisely.
We will guide you through a simple process where we define your goals and assess your risk tolerance. From there, we will work with you to create a plan for your future, based on your goals, resources and risk tolerance.
Call financial planners in Perth on 1300 745 778 to learn more.