Goals: Write a short statement of current financial goals with a plan – the when, why, what and how of the near future (next 3 – 6 months). Be very specific. Date of accomplishment of this goal: October 14th, 2014.
Example: Short Term Goal
Within 6 months (when), I would like to pay off all my credit cards, consolidate my student loans, get a payoff quote for my car, and begin to save for a vacation next year (whats). I will use my good credit (how) to get a better consolidation interest loan and will work a short term job (how) to earn extra income to jump start my debt free existence (why). I am doing this because I really want to go on vacation but I want to live it up but I don’t want to overextend myself by using credit (why).
Using the budget option in Excel or Numbers (or any other spreadsheet program that offers it), develop a projected monthly budget, listing expected income sources with a total, and expected expenses (some fixed, some variable). Include an emergency line of expenses. Be as realistic as possible. If you are not paying your own expenses, you will need to ask whomever does this for you to dissever what your expenses are: i.e. family, landlord etc.
Include a savings amount, even if it is minimal. Say what this savings is for and the length of time (short term, long term, permanent) The expenses total plus savings must be equal to income total.
