What Do I Call a Financial Plan?
Financial plan is just a simple sheet with a few estimations and assumptions over an estimated time span. There is no way we can predict this is how it’s gonna go and this is how long it’s gonna take. That’s why I said we will be catering this for the rest of our lives. Every few months I will update the sheet based on the current situation. It may be that the expenses increased due to the stock market crash, Brexit, financial depression or anything related to this. Everything affects the economy and every household feels it, in either a good or a bad way.
There is only one Financial Plan you create and try to hit it, mainly. However, having just one light far away in the darkness may demotivate some of us. For this reason, I will create three different financial plans. After hitting each one, we will be able to re-invest the surplus of money onto the next one. This way reaching the end goal faster and easier.
Three Financial Plans
You can read about all of these more here:
I will go over these here quickly. For anyone who doesn’t like reading longer articles.
Minimum Viable Expenses
The idea behind this is to squeeze as much as we can out of the worst situation we can be. I will show you how to make money whilst at the bottom of the ladder and how to think differently about the situation you are in. Anyone can do this. No matter who you are and what you do. Every job is a job and every dollar can be multiplied into two. Actually, in our case, we will make 4 out of 1. That’s a great deal, don’t you think?
Real Life Expenses
This is where we still keep our expenses to the bare minimum, maybe adding only a few more mandatory ones to make our lives easier. We will see how much we actually need to earn to live within our means. We will also look at how we can start generating passive income. Since we have implemented our minimum viable expense plan, we have got some spare cash to invest. Everyone loves this word – investment – because it associates with wealth. However, investments are tricky and go to both extremes – earn lots or lose everything and more. The capital is at risk. But fear no more – the worst that can happen is we lose it all. And we will start at square one again. We have to implement MVE first, so we wouldn’t bankrupt. Don’t skip it. Really, don’t.
Pinnacle Of Expenses
Living a life of full flavor is a dream of the most people. Mine too, I’m no exception. At this point we will have quite a few investments returning us money. We will go over our financial plan for the third time and add some more security cushions plus talk about higher risk investments. We will check how much we have to make in passive income to live a life to the fullest. Every step in a financial planning is very important. I don’t know what the bottom line is, yet. I’d guess £2000 a month would be a very good start, but read more about this in the full article. I’m just speculating here. You will find all the numbers there. Let’s achieve the success together.