How to Make a Spending Plan for Financial Planning

How to Make a Spending Plan for Financial Planning
So, now that we know how much you're spending, and how much extra cash you might be able to have, and we know what your net worth is, let's figure out how to get you to "B". Now, it's important when you run numbers like this that we have a certain list of assumptions that will help you along. Your assets, as a general rule of thumb, I would plug in no more than ten percent, but around eight to ten percent in growth of your assets. The other thing I would do is make sure that your spending level is increased by the rate of inflation every year, and there are many worksheets on the website, the Yahoo finance website, there's many cash flows that you can do financial planning, I think you even Charles Schwab has a website that you can plug in these numbers and they can tell you where you're going to end up in the future. Once you plug in these numbers it will tell you realistically what point in the future, how much money you'll have and if you'll be able to retire or become financially independent I like to say because retirement makes it sound like we're old. So, listen, we've got a number of assumptions that can also be changed in this scenario. So, if the outcome that you get isn't what you're expecting or what you're looking for, you need to take a step back and say, how realistic is this. So, if I'm making $30,000.00 a year and I want to be a multi-millionaire what steps am I going to take to make that happen? You know, do I get a job where I make more money, do I buy investment properties, there's got to be a clear plan if the numbers aren't creating themselves. Now, if you put all those things in and you're still having trouble there's a lot of other flexibility that we can incorporate. We can run the numbers for a longer period of time so maybe you work a couple of years longer than you initially thought or maybe you can find ways to spend less and take a look at your budget and see ways to be more efficient with your spending and increase your savings. Either way, this model is something that, it's not rocket science, but you want to make sure that you have the correct information in or you going to get not the correct information out. I can help you to do this if you'd like to go on to tammytrenta.com. I have a forum, you can ask me questions and I'd be happy to put together a financial plan for you.