What You Earn And Where You Earn It
Once you have completed your
personal financial statement,
you should be able to identify
the resources available to help
you achieve your goals. Do not
be concerned if you have less
than expected. Net worth is just
one aspect.
To achieve your
financial goals you should recognize
that your income may be the most
important resource you have
to help reach your goals. Once
you realize this, determine
how much is coming in, how
much is going out and where
it is going. When calculating
your personal financial statement,
be sure to include
income such as salary, investments
and retirement.
Use the Income And Expense
Summary to estimate your current
monthly income and expenses.
It may help to use your bank
statements and credit card
statements. Record your expenditures
to analyze your spending habits
and make adjustments to
help you achieve your financial
goals. Every financial plan
should include a savings and
investment goal, ideally 10 percent to 15
percent of your net income. Generally,
the best way to achieve this
goal is to pay yourself first, by
automatically withdrawing this
amount at the beginning of
each month.
When you have completed the
Income And Expense Summary,
you are ready to move on
to Step 4.
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Basic Money Management
Basic Money Management
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