Why Do We Need Financial Planning?
We all dream of living a secure and happy life with our family. But to actually turn this dream into a reality, we need to have a comprehensive, long term financial planning. This is where the ICEA Budget Calculator can help you.
The ICEA Budget Calculator enables you to make monthly budget and keep track with your income and daily expenditure. By month end, you will be able to know your actual financial position.
Four (4) Simple Steps on How to Manage Your Money Wisely
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Step 1: Set Your Financial Goals
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Setting these goals will help you understand the value of money and encourage prudent spending. Your financial goals may include starting a family, child’s education plan, medical and funeral insurance and saving for retirement.
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Step 2: Know Where Your Money Goes
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After setting your goals, start developing a spending plan so that it’s easier to achieve your goals. With this you will know:
- Where and how you spend your money.
- How much you owe monthly.
- How much is left at the end of the month.
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Step 3: Assess Your Spending Habits
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If you find that you have nothing left at the end of the month, it’s time to assess your spending habits. Look through your list of expenses and determine if they are a necessity or luxury item.
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Step 4: Write Down Your Spending Plan
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A spending plan can help you manage your finances. You can also target areas where spending is out of control and also set a clear path for saving. You can start making your own spending plan by using this simple guide:
- Establish your monthly total income;
- Add up your total expenses including fixed monthly bills, loan repayments, rentals and daily living expenses;
- Put aside a fixed sum of money to meet emergencies or seasonal expenses (e.g. school fees, fuel expenses, insurance renewals and taxes).
