Page 71 - Making It To The End Of The Month

PLANNING YOUR FINANCIAL DESTINY | Chapter 7
When creating a spending plan, take into account the following:
1. A Contingency
Include a contingency to cover any unexpected expenses that may arise. This might be something small, such as an extra guest for dinner, or it might be something more significant, such as a broken boiler in the middle of winter. From either extreme to anything in between, a contingency will ensure that you’re able to meet the need.
2. Savings
A responsible approach to finances includes saving, so include it in your spending plan. Make sure that your savings have a specific purpose, as opposed to savings that are for a ‘rainy day’. No, your contingency is for rainy days and emergencies. Your savings, on the other hand, are to meet short, medium and long-term goals. What could you save for? Planned purchases, holidays, events, replacement of consumer goods, retirement etc.
3. Investments
Whereas savings store up money for future use with no personal risk, investments commit money into some form of investment vehicle, such as shares, stocks or bonds with the aim of making a financial return and
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