With the word financial planning you may think of companies where this is taking place. But actually, every person should do financial planning. How much money comes in and how much goes out?
Financial planning and a financial plan
Many of the expenses can be planned well. For example the monthly bills for the electricity, the mobile phone and the different insurance are all visible. The weekly shopping can also be estimated properly.
What is more difficult are the unexpected expenses. However, these are often also the expenditures that are larger in size. If, for example, the washing machine or TV breaks, you will have to spend a considerable amount to replace it.
Good financial planning is extremely important for unexpected expenses. Make a good estimate of all the devices that you have in house, but also for example the car, maintenance and MOT.
You should actually set aside a monthly amount that would cover the costs of repair or replacement. A kind of financial plan that takes into account your financial situation and where you include the risks of unexpected expenses.
Just take your time
It may sound more complicated than it is. Just take a few hours to do it and put everything down on paper, or better yet just create a simple excel spreadsheet.
Doing this will immediately make your financial situation a lot more transparent, which can prevent many problems in the future. Moreover, this will give you a certain degree of courage.
Still unexpected expenses
If you have made a good financial plan for yourself, it can of course always happen that there are unexpected expenses that you had not planned. Or the expenses come earlier than planned.
A washing machine, for example, often lasts around 10 years. But it can, of course, occur that it will collapse after, for example, 5 years. And then you may not have put enough money aside to replace it.
Or maybe you have found the vacation of your dreams, but you have not yet received your vacation pay. In order to secure your vacation, you could consider using a flash credit to borrow money in the short term.
In such cases you can make use of a so-called mini loan. This is a type of loan where you can borrow money quickly, without much bureaucracy.
By default you can borrow an amount up to approximately 1400 euros. There is here no credit check done making the application process much faster. However, a so-called guarantee is often requested. This means that there is someone who guarantees that the loan will be repaid. This can be someone you propose yourself, such as family or friends, but can also be arranged by the credit provider.
For example, a provider of such credit that you can get in the Netherlands is Dapodle.