This cartoon Prompted me to write this blog..
Do you make resolutions every year!
When we talk about Financial Resolutions, all of us can have different resolutions that is relevant to us.
- Buy a house,
- Upgrade the car
- Travel overseas
-save for the rainy days
- save for a wedding... etc.etc...
For for anything that has to be financially planned, the first thing to look at is the Cash flow.
- Do you spend less than what you earn monthly.
- Do you save at least 10% of my monthly income.
- Do you have at least six months worth of my income as emergency funds.
- Do you pay my credit card bills and other debt obligations, in full and on time each month.
- Do you have adequate financial protection.
If you have worked out a Cash flow statement of how much you earn and how much you spend,
if you have a surplus then its good. But if there is deficit, then you need to do some serious Budgeting.
The three things that matter for a good Budget-
- Know what is your Income,
- What are the expenses,
- when the due dates are for each payment to be made. Budget is time sensitive.
Once the Budget and Cash flow is done, you need to review it regularly to see the progress towards your goal.
For any resolution to be achieved, constant review is required. Wishing you all the best in achieving your Resolutions...
