How to Save Money Using a Financial Planner
Using planners aren’t just limited to setting goals and writing your to-do lists. In fact, using a planner is also a great way to help you understand your current finances, save money and plan for your future.
A good financial planner will walk you through every aspect of your finances for an entire year in order to help you identify where you can improve, what areas to cut back on, how you can set realistic and achievable goals and most importantly, how you can reach those goals!
Let’s dive right into some ways in which you can use a financial planner to help you achieve your financial goals.
1. Identify Your Current Spending Habits
Our financial planner starts out by providing you with an in-depth worksheet to identify your current spending habits.
Before you jump into writing out any goals, it’s important to know what your current financial status looks like so you are able to come up with some realistic goals for yourself and your household.
Lots of people aren’t aware of just how much they are spending on little expenses each month, which is why it’s important to find a financial planner that can help you uncover all those little expenses that add up.
2. Write Down Your Financial Goals
Now that you’ve identified your current financial situation and have more clarity surrounding it, you can begin to write down your goals. Writing down your goals increases your chance of achieving them, so don’t skip this step!
When writing down any type of financial goals, it’s important to write down a big overarching goal for the year, but also to write down smaller goals that you can achieve each week.
On top of writing down your goals, a good financial planner will also give you room to write the steps you’ll need to take in order to reach each goal you have listed!
3. Identify Your Ideal Spending
After you’ve done an analysis of your current financial status as well as your goals for the upcoming weeks, months and year, you can combine both your goals and your current spending to formulate what your ideal spending habits are.
After going through this exercise, you will be able to have a clear comparison of your current spending habits versus your ideal spending habits, which will help you find areas you can improve in.
4. Forecast Upcoming Expenses
If you aren’t planning out your future expenses, you aren’t going to have a clear idea of how much money you need to have in your savings, and how much you should be putting away to match those expenses and your goals.
This section of your planner will need to be continuously updated as unexpected expenses will always arise no matter how much planning you do (although when you plan, those unexpected expenses won’t feel like such a burden).
5. Compare Your Savings and Debt
After you’ve forecasted your expenses, you should begin to analyze your savings and your debt.
This will help you better understand how much savings is really necessary in order to pay your yearly expenses as well as your debt.
When reflecting upon your finances, you should ask yourself questions along these lines:
- What was your worst month for income and why?
- What was your best month for income and how can you replicate that?
- At what point during the year did your expenses decrease and is it possible to achieve that again?
Reflecting on the high (and low) points of your fiscal year can help you better understand where you can improve and what you are doing that is working in your favor!
Can Using a Financial Planner Really Save You Money?
Using a financial planner will definitely help save you money! Not only will using one help you see where you need to cut back, but it will also make managing your finances easy.
As you can see by going through the steps above, a lot of work goes into organizing your finances and doing it properly. But, you can feel relieved because our financial planner will guide you through the above process and make managing your money a piece of cake!
Tell me in the comments:
‘What’s your next financial goal? Do you want to make more money, save, pay something?’
Let me know!
See in the comments, byeeeee!