Financial Planning When You’re Broke
How to Plan for Your Financial Future When You’re Broke
It is never too late or too early to start planning for the future. Prepare for your future and achieve your life goals with a financial plan.
Have you been living paycheck to paycheck all these years? Or are you still trying to pay off your debt? Don’t let yourself stay broke forever. Take advantage of our ACCESS LOANSTM program and apply these financial planning tips.
What Is Financial Planning?
Financial planning is an approach or a guide toward achieving one’s life goals. It involves money management, savings, and investments. A financial plan is necessary to help you achieve your goals, such as retirement planning or buying a house. The questions for you is “how to start and follow a financial plan when you’re broke?”
Financial Planning Tips
a) Set a Realistic Goal
A goal is important for any plan. Think about what you want to achieve within ten or five years from now. If you are absolutely new to financial planning, start small and limit your goal to one or two years. For example, you could aim to have $500 in your emergency savings by the end of the year. Always keep your goal realistic, then work your way backwards in building a plan to achieve it.
b) Generating Money for Your Plan
Once you have a goal, your plan should first focus on generating money, here are a few ways to generate money:
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Reduce Your Bills
Surely, some bills are fixed, but what about your electricity bill, your credit cards, your subscriptions? Perhaps you could eliminate some of them or reduce usage to minimize their costs.
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Stop Using Your Credit Cards
Your credit cards are often used for impulsive shopping and they have ridiculously high interest rates. Try to minimize the use of your credit card and pay more than the minimum payment to eliminate or minimize your credit card debt.
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Find Another Source of Income
If your salary is not enough, you definitely need to find other ways to make more money. If you have extra time, you could work part-time job or start a business. Alternatively, you could apply to our loan program and push through with investments.
c) Growing Your Money
Don’t let your money sit in a bank. Use it to invest so it will grow. You could invest in dividend reinvestment plans (DRIPS) or exchange-traded funds (ETF).
Look into your organization’s employee benefits. If they offer investment or high-yield savings accounts, take advantage of these as they offer cost-effective ways to grow your money and prepare for retirement.
Start planning for the future with our ACCESS LOANSTM product.
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