Weekly Reflections #16 : My Financial Planning.

_{Hello Everyone. I am @shiftitamanna
From #Bangladesh}

Assalamu Alaikum everyone. Financial planning also plays an important role in managing an individual or a country. A financial plan can maintain our financial stability. As such I am an accounting student so I can review these matters very well. So I am here to share with you my financial planning service strategies.

_{Image created by Canva.}

Do you think Financial Planning is important and why?

I think financial planning means spending according to income. I consider financial planning to be the advance preparation of future savings based on a person's current and potential income. There are many questions involved in financial planning. For example:

• We identify our current income and potential sources of income.

• Identifying what the future expenditure is likely to be and in which sectors the expenditure is likely to be.

• At the same time, we also need to consider how we can save for the future.

The above reasons show that identifying the points that I must play a very important role in my financial planning. We should also make an outline of how we will meet the additional funds if we need them. So finally I think we all need to have a sound financial plan to secure our future and meet our contingency needs.

How do you track your expenses and savings?

As I am a working woman, I have to prepare a budget at the beginning of every month for monthly expenses. This budget includes my savings of course. At the beginning of each month I have certain spending and savings accounts that I have to pay off. I then track my expenses for the rest of the month.

First I presented below how I track my expenses:

• I first make a list of my expenses for the whole month. I manage it as my financial diary.

• Then determine the expenditure budget because I think the budget is the correct plan of income and expenditure. Which helps me to achieve specific goals through a well-organized management.

source

• To maintain financial stability, I identify and list where my money is going from my bank accounts, digital wallets and cards, and how much is being spent in which sectors.

Also I can maintain the savings track very well. I keep track of my monthly savings in an excel sheet both at home and at my office. This allows me to easily track annual savings and see a bigger picture of my financial health.

What are some common financial mistakes to avoid?

In order to avoid common financial mistakes we need to take some simple steps. As I manage my finances I can avoid common mistakes by doing a few simple tasks. I present it in point form below:

• First of all keep a record of financial transactions : I think keeping records of transactions is a very effective way to avoid financial mistakes. By doing this, I can know my entire month's account through the ledger. By doing this, balance is created between income and expenditure.

• Making a financial budget : We often do not plan any budget for our income and expenditure. As a result, at the end of the day, the amount of expenditure becomes more than my income. To avoid such mistakes, I think the easiest way to organize the financial management is to make a budget. By doing this, my financial situation will be understood at a glance.

• Using Personal Finances Efficiently : We must use financial aspects at least efficiently. For example, it is very important to review the various conditions and exemptions in any sector of investment or financial transactions. This will ensure that you are using your personal money in the right place and will not face any financial loss.

• Building an emergency fund : I think every household should have this task. Because it will be beneficial for the future to have an emergency fund in order to be saved from sudden danger. I can also term it as savings. So if this savings or fund is formed then we can face any financial problems in future.

I would like to invite my friends @mdkamran99, @hotspotitaly and @fombae to participate in this contest.

<sup>I invite you to support @pennsif and @pennsif.witness to grow across the whole platform through robust communication at all levels and targeted high-yield developments with the resources available.

Click Here</sup>