by Mike Lazear, PIC Current Assistant Producer
This is the final article of our three-part series on mapping your financial future. Check out yesterday’s edition to learn how to get out of debt. Today’s we talk about building a budget, planning your financial future, and following through on that plan.
Now that you have a good idea of where to begin your journey to better financial health, you can build an actual budget that works for you. If you stick to an effective budget with a clear goal in mind, you will be amazed by how much better your finances begin to look. There is a light at the end of the tunnel!
Defining Your Financial Goals
What do you really want out of life? Do you have a picture of retirement that works for you? Have you even begun to think that far ahead? These are important questions to ask yourself before you can set goals with specific dollar amounts. You need to honestly look at your current expenses, income, and how much you need in a worst-case scenario. It is also important to examine your life at present, and examine it honestly. It is not possible to plan your financial future if you have no idea where you stand today!
Many people don’t have any real financial goal in mind. They simply buy things that they need (or want), go to work, bring home a paycheck, and watch in dismay as the gas prices get worse, the market continues to slide, and their credit card balances seem to grow and grow. Does this sound like you? Don’t despair if it does! There are some great exercises in the following links to help you get a clear picture of what you want the present and future to look like. Once you establish a goal, building a budget will not seem nearly as daunting.
North Dakota State Financial Guide – A good general outline of taking steps to a better financial future
Cash Money Life – For inspiration, here is a blogroll from last year filled with stories of others who have set real financial goals
PF Advice – Here is a day-by-day step-by-step guide to getting your finances in order. It covers many of the same topics we covered in parts 1 and 2
Calculating The Future
Once you have established a clearer picture of what your goals are, you can begin to examine the nitty-gritty dollar amounts involved. It’s important to start with your monthly expenses and go from there. If you find you are barely getting by, check out our recent post on stretching the dollar. There are many ways to save a bit.
Below are links to free financial calculators. Some will help you figure out a budget. Others will help you plan for retirement or go back to school. Whatever your needs are, there is a calculator out there that will help you out. In the end, it’s important to remember that every situation is different. Look at your wants and needs and create a personal budget that you. A calculator alone can’t answer all your questions.
E Fund – This site lets you calculate interest rates, monthly payments and total number of payments for various types of loans
Education Government Site – This calculator is good for figuring out school expenses combined with living expenses
Calculator Web – This simple calculator will help you build a monthly expenses budget
CGI – And so will this one
CCCS Jackson – Here is a site that will help you calculate various types of loans and see how they affect your finances. Draws some nice pie charts with the results.
Bankrate Credit Cards – This handy calculator will help you determine how long it will take to pay of a specific credit card
My Calculators – Another good calculator that is useful for various purchases as well as credit cards
Mortgage Calculator – Here is a good mortgage calculator
Mortgage Rates – And another, more detailed one
Your Budget
Now that you have established a budget for yourself, in whichever financial arena you feel needs the most work, you can go forward and follow your plan. If you feel like you are getting off track, it might be helpful to come back to this guide and check out our resources for additional help and support.
Remember, you are not alone. There are many people who are struggling to achieve financial health. It is a process that takes time. But if you’re patient, follow a plan and remember that you’re in control, you should come out on top. You can do it!
For more great financial advice and resources, check out these links:
Bankrate – Bankrate has everything you’ll need with regard to finances
Money at CNN – CNN Money 101 has a series of great lessons to follow
Money Central at MSN – MSN Money has a lot of useful news, updates, and stock alerts
Google Finance – Google finance has a lot of good tips, tools and useful news links
USA Today Money – USA Today’s Money section
