Are you resisting a financial plan?  Do you even know what a financial plan is?  A financial plan is a plan that you use to organize your finances and work towards completing financial goals.

You need a financial plan if you want to live without worrying about your finances, be able to afford a house, car, retirement, vacations, etc., and succeed with financial stability.  If you argue with your spouse about money or if you just want more money, you need a financial plan.

Steps to a Financial Plan

There are several steps needed to complete a financial plan.  Follow these steps, and you can get there.  Of course, this is assuming you have some sort of income and money to manage.  If you don’t, you are either not old enough or don’t have the access to it.  As soon as you start earning money, you can follow this, too.  The steps you need to follow are to set goals, design a plan, and build a budget to complete that plan.

Setting your Goals

There are no perfect goals for everyone.  You can have any kind of goals, but the most common are buying a house, buying a car, retiring, sending your kinds to college, going on vacation, etc.  You can have these goals, or any other that are smaller, larger, farther away, a few months away, etc.

A financial goal is something you want to complete that costs money.  If you follow these steps, work hard, and keep working, you can get them.  If you think these goals aren’t attainable, that is why you design a plan.

Designing a Plan

The plan will allow you to complete these goals.  You figure out how much time you have to complete them, how much money you need total, and how much money you need to save each month.  If a goal isn’t attainable according to your income and plan, you will either need to trash it, adjust it, or adjust your budget.

Build a Budget

Building a budget will help you to complete your goals faster.  The faster you complete them, the more satisfied you will be, and the more goals you can complete because you have more time and money.

A budget will mean setting up spending categories and setting a maximum spending amount for each.  This way, you will not overspend as long as you follow the budget.

Follow your Financial Plan

Finally, you must follow your financial plan and budget.  If you follow it and adjust only when necessary, you should meet your goals.  That is the whole point of building your plan, to make it easier and guaranteed to fulfill your goals.

A goal is always more than just the face value of the cost.  When your goal is to buy a house and get a mortgage for it, you know there will be more costs including taxes, homeowner’s insurance, etc.  You need to factor these in to the cost of the item.

If you want to modify your car, that will cost money too and is a good example of a ‘want’ financial goal.  When you begin to work on your vehicle, you will need to factor in new parts, upkeep, and insurance.  It may be worth your time to look for cheap modified car insurance.  You want to save money wherever you can in order to complete your goal as soon as possible.

You don’t have to look at any of your goals as greedy or selfish just because it isn’t necessary for survival.  We all want things that we don’t need and it’s only healthy to work towards these goals as well.  Just make sure you include everything you need in your plan.

Also, don’t be tempted to just go out and buy whatever it is you want because you want it so bad.  Not only are you throwing out your goal but you are probably sacrificing other more important goals because you are impatient.  Patience is a big part of financial planning that you must always consider.

When you hear the word ’software’ you probably imagine a large price tag such as with a type of stock market software.  That doesn’t have to be the case.  Yes, there are plenty of financial planning software programs that have a large price tag, but there are also a few programs that are affordable and still top quality.

First of all, you could always use a spreadsheet program. If you don’t have a lot of money to manage and a lot of expenses to manage, you really don’t need a big complicated program. You just need something to keep track of what you’re making what you’re spending money on. If you have a lot of investments and savings, more advanced software might be helpful, but you could still figure out how to design your own spreadsheet that is effective in that area.

One of my favorite programs to use it is absolutely free is Quicken online. Quicken is a very popular financial software program. It has just recently made their online version free. It is a great program, especially considering it is free.

Sign up for Quicken and start managing your money. Quicken Online – Web-based Money Management

You can easily attach all your accounts such as credit cards, checking account, savings account, investment accounts, etc. This helps keep everything organized in one place. It is also completely online, so you can check it from wherever you are as long as you have an Internet connection. Although, I would not recommend using another computer to access your account. For your own safety, try to stick with your own home computer.

It will also keep track of your spending. You can put in how much you want to be able to spend on each category such as rent, food, eating out, entertainment, etc. They let you know when you are running out in each category and by how much. It is very convenient. You don’t enter or keep track of this information yourself.

There are also other free online programs similar duplicate. Try out Quicken, if you don’t like it move onto another program. Overall, most of these programs are the same. They have similar qualities that are carried out different ways.

The most important thing is that you are keeping track of your money. The better job you are doing at tracking your income and expenses, the more you’ll be able to save for the things you really want to spend money on.

Some people make a lot of money. They make more money and probably have more expenses. They have a lot to deal with because they have to keep track of where the money is coming from, where it’s going, and where it will be until it is spent.

This doesn’t include everyone. There are also the people that make moderate incomes and have moderate expenses. This article is for neither of these kinds of people. There are also the people who don’t make a lot of money and don’t spend much either. These people usually include students, or people who live with someone else or being partially supported by another.

There is nothing wrong with being in either of these situations, it is just a fact of life. The problem comes when it comes time for money management. He probably make a little bit of money at your part-time job or even a full-time job, but not much. You don’t have to pay for things like rent or mortgage because these are covered by the people you live with. You don’t make a lot of money, so you don’t have much to sit around and banks are investments.

You want to save more money so that maybe you can move out or buy a house. You decide that the best way to do this is to begin by managing your money. Financial planning software is what you’ve decided you need to help you out. Anything you look at it so complicated, is this really necessary for your small income and low amount of expenses?

There are varying degrees of financial planning software available. Usually the deluxe or premium versions will have a lot of features you won’t need.  If you don’t make a lot of money and you don’t spend a lot of money you have less to manage.

I would recommend that you either use an online program such as Quicken Online because it is free and simple, or keep track of an Excel spreadsheet. This is going to be the easiest and simplest way for you and you can still be an effective budgeter or were money manager.

Notebook and Pen or Pencil

Using a notebook sounds basic and simple, especially if you easily get confused with software and confusing, but overall, it really isn’t easier.  Once you get the hang of a software program or spreadsheet, there will less likely be mistakes and the whole process will be faster and more efficient.  I wouldn’t use a notebook unless you are carrying around a tiny one to keep track of spending on the go.

Should you use Excel?

You can manage your money with excel.  You can budget and you can keep track of your financial goals.  The downside is that unless you find a premade worksheet that you like, you have to design one yourself.  For some people, this is preferable because they can tailor it exactly how they want.  If you are lik this, excel, is perfect.

What’s great about excel is that you can have a book and set up different sheets.  Make a sheet for long term financial goals, short term financial goals, a budget, investments, etc.  You can be as detailed or as simple as you want and design it all as you want.

When you should use Software?

Software makes things a lot easier.  It’s all set up, you just customize it to your situation and add in your numbers.  It might even give you great features you never thought of.  Quicken and Microsoft Money are two of the most popular financial planning software available.

Quicken is also available online which is absolutely free.  This is great if you are trying to save money because not only will it help you with a budget, but it’s free, so you don’t have to buy anything.  It’s really worth giving it a try.  If you don’t like it, stop using it.

Another great benefit of Quicken and Microsoft Money is that you can connect all your accounts such as bank accounts and investment accounts, all together.  This makes it so simple having everything in one place.  You can keep everything organized.  Most of us have 2 or more accounts dealing with money, and this is a great benefit.

Making a one time investment into financial planning software can mean a simple money management program and keeping good track of your money.  It’s worth the investment, and if you don’t want to spend money, you don’t have to with Quicken Online.

Quicken Financial Planning Software

Quicken is a common financial planning software that has been around for a while.  It is popular because it is so efficient and easy to use.  You can purchase the Quicken software directly from their site and choose between Deluxe, Premier, and Home and Business.  They also offer Rental Property Manager for those who have rental property.

If you are looking to budget your money, the Deluxe version is the way to go.  You can pay bills, save money, and optimize your investment portfolio all easily in one place.  If you can see where your money is going, you will be less likely to throw it away.

The Premier version includes everything from the deluxe version but it gives you more powerful investment management tools.  You can manage and research your investments and balance your portfolio.  This program makes it very simple and easy.

The Home and Business version is exactly what it sounds.  You can manage your personal and business finances all together.  Do you have a small business?  This would be perfect for you to keep all your money organized in one place.

Don’t want to spend money on financial planning software?

If you are interested in Quicken but just don’t have the cash to spare, you can choose their free version. Free Quicken Online is 100% free to sign up and use and you can manage your money completely online. I have used it and love how it tracks your money in your accounts and adds up what you’re spending. Budgeting couldn’t be easier with this program.

Microsoft Money

If you’re looking for another cheap alternative but don’t want something online, you should try out Microsoft Money.  You can purchase it on Amazon for a very affordable price, check out their reviews, and see how it can help you manage your own money.

Choose between the standard version and the premium version, and you can still save a lot on the purchase price.

Money management is very important when it comes to financial planning.  You need to have it down and organized if you want to reach your goals.  With any of these tools you can make it a lot easier than if you were using pen and paper and you don’t have to design a spreadsheet.  Make money management simple and simplify your life.

For those who aren’t financially savvy and don’t desire to be, financial advisers can help.  A financial adviser can carry a lot of benefits for you.  They can help you manage and plan a budget, build a plan to eliminate debt, plan for future goals such as kid’s college, retirement, purchasing a home, etc., and investing.

Should you Think about Financial Planning Jobs?

If you hate dealing with money, financial planning jobs are not for you.  You have to have a passion for finance, planning, and investing, at least to a degree.  If you can’t stand dealing with money, there is no way you’re going to be able to get your clients on board with proper financial planning.

If you manage your own money well, find yourself giving other people financial advice often, and know a lot about finance, a financial planning job might be right for you.

Look into an Education

If you are going to school, you should consider getting a bachelor’s degree in accounting and/or finance.  You can later become a Certified Financial Planner or CFP.  If you get a degree in accounting, you might find that you like that better and end up becoming a CPA.

Learn all about Finance

If you are to be a financial planner, you will need to be an expert in finance.  Your going to be helping people plan for retirement, manage their investments, budget, and much more, so you’ll need to know what you’re doing.  Get an education and learn all that you can by reading and practicing with your own money.

Are Financial Planning Jobs good Jobs to Have?

In a bad economy, financial planning jobs may or may not be in high demand.  As soon as the economy recovers, they may be in much higher demand.  In this case, you can make a lot of money as a financial planner or adviser.  That’s what’s great about becoming a CPA and then a CFP.  You can be an accountant and gain experience, and then when the time is right, you can move into financial planning.

Think it over before you jump into anything.  If you already have a business degree or experience in the finance field, you are ahead of the game.  Put some time into it to find out of a financial planning job is right for you.