The Beginning of the Financial Plan

Money management. This is not one of my strong suits but by this time next year I intend for it to be. To make this happen I need a plan.

Using excel I am going to start analyzing my financial patterns. First I am going to track how much money I make this month and how it gets spent. I am also going to start tracking bills and projected expenses and create a budget for the life I want to live in the next few years while I am at school. This way I will have a target income that I need to generate. This will give me the metrics to set my goals and benchmarks by which to measure growth.

Also understanding my spending habits will help me change them. By understanding that I am spending too much on coffee and not enough on food I will be able to make adjustments. This financial course correction is just the beginning. As I get my finances on track I want to move from being competent with money to being financially stable. To me this means having a savings account, an emergency fund and that I live inside my means.

But as in any other instance of personal growth, with financial issues the first thing is to know myself, to look honestly at the situations I have gotten myself into and not look away.