Financial planning allows you to control your family budget and avoid unnecessary expenses. In this respect kp.ru said personal finance coach Maxim Temchenko.
To do this, he suggests estimating expected income, estimating upcoming expenses, and distributing remaining funds among “envelopes.” So, estimate how much you can allocate for financial goals.
“First of all, look: how much did you earn last year? What are your income sources, how many do you have? So how much did you spend on what in a year? – the expert advised.
He also recommends determining in advance what you’re saving money for. For example, buying a phone, repairing it, etc. Temchenko says it’s important to start long-term planning after determining short-term goals. In this case, you will have to save for your goals for more than a year. For example, these include buying a car or taking out a mortgage. You can also save money on their implementation and distribute it among “envelopes”.
Inna Filatova, financial advisor and journalist who previously held an MBA in financial management Recommended Prepare a written financial plan. According to him, the plan needs to be divided into intermediate checkpoints and have a list of activities that need to be done to achieve each intermediate stage until the person reaches the goal.
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