Financial planning is about streamlining your cash flows towards achieving your financial goals, then it is important to know the basic characteristic of the CashFlow.
Expenses :
Lets start with how we spend : the expenses are the main and the first outflow from our pocket. Many of the clients asks me are we spending too high or very less ? but let me tale you , the expenses depends on how you look towards life. But yes if we have to empower ourselves and to have a Good financial future then we should know what portion of the income we can utilize for expenses majorly Household & lifestyle expenses.
Some people talks about bringing new thinking system for savings which talks about
Income - Savings = Expenses.
I will not buy this, this may not be a good thing, i feel if you are happy about the today's then only you can enjoy tomorrow, so first be happy today & then think about tomorrow. There are many people who leaves only in Future which never becomes today !
At initial phase of career you may not be getting any chance to save may be 100% of your income is going towards expenses, the same happens when the family member number increases. but ignoring theses some exceptions the expenses should be between 30% to 35% of income, if it is more than that without the major change in family structure or major exceptional expenses then it should ring a bell !
try to write down & track the expenses.
This is important aspect of Financial planning which make or break you & your financial future .
Any Question ? Ask !!!
Expenses :
Some people talks about bringing new thinking system for savings which talks about
Income - Savings = Expenses.
I will not buy this, this may not be a good thing, i feel if you are happy about the today's then only you can enjoy tomorrow, so first be happy today & then think about tomorrow. There are many people who leaves only in Future which never becomes today !
At initial phase of career you may not be getting any chance to save may be 100% of your income is going towards expenses, the same happens when the family member number increases. but ignoring theses some exceptions the expenses should be between 30% to 35% of income, if it is more than that without the major change in family structure or major exceptional expenses then it should ring a bell !
try to write down & track the expenses.
This is important aspect of Financial planning which make or break you & your financial future .
Any Question ? Ask !!!
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