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Guidelines of Personal Financial Management.

We all have goals of what we want to achieve either short-term or on a long-term basis. Proper financial planning helps an individual to comfortably provide for themselves and their dependents and work towards achieving the goals they have set for themselves.

You should do your financial planning because you understand yourself better including what you earn and your needs and goals. Impulse buying can be the reason why we spend more than we earn leaving us in debts which should not be the case. It is advisable to plan for our finances and stay committed to the plan because otherwise, we would not solve any issue.

There are programs on the internet that could help you in planning your finances all you have to enter is customized information about yourself, and you can also consider taking time and write down about your finances and what you need to achieve. It is essential to determine where you are first before you start planning on what you should start doing in the future and this will be a good place to start working on. Evaluating your current status will show you where you are and what you should rectify to move towards your goals.

Document about your finances information and these could include where you get money to spend including unofficial means like gifts. From this, you need to categorize your income as what is guaranteed like your salary and what you can term as a bonus, and that could be the gifts from friends or family, and they are not guaranteed. You need to match what your income is going to finance on your budget and your regular bills should be financed by your regular income while the bonus money can be used for things like shopping and have fun.

You must also group your spending into either basic or luxury spending for you to know what goes away and what stays. You should not forget to write about miscellaneous like airtime and transport or fuel as they could be eating a big part of your finances. You should match your needs with the source of financing it requires depending on if it is a basic need or just luxury and consequently get rid of what is not necessary.

Your goals could include going on a vacation, buying an apartment, buying new furniture or anything that you desire and they will motivate you to work towards them by saving and once you are able to save for your goals regardless of how small they may be then you are assured of having the ability to save for that big thing. Consider a savings plan where you contribute on a regular basis as this will ensure that you stay committed to your goal and you must appreciate your efforts in your journey of financial growth.

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