Rosalind Evans
Managing personal finances can often feel like a delicate balancing act. With questions such as “Should I pay off all of my debt before investing?”, “Should I save for a home or my child’s education?” and “How much should I save for emergencies?” it can be difficult to prioritize and create a sound financial plan. The challenge lies not only in the multitude of reasonable answers available for each question but also in the unpredictable nature of the future. To assist with this daunting task, we’ve compiled a list of four free resources and tools to guide you in formulating your perfect financial plan.
1. Dave Ramsey’s Baby Steps:
This popular approach is a simple and effective way to prioritize financial goals. It encompasses seven steps that range from saving for emergencies to building wealth. However, it has drawbacks, such as prioritizing debt repayment over potential employer 401(k) matches.
2. Bogleheads Prioritizing Investments Plan:
This plan improves Dave Ramsey’s approach by emphasizing the importance of employer-match benefits and prioritizing debt repayment based on interest rates. By focusing on maximizing employer matches and paying off high-interest debt first, this plan offers a more nuanced approach to achieving financial goals.
3. Personal Income Spending Flowchart:
Found on the personal finance subreddit, this flowchart is a comprehensive guide that accounts for nearly every possible financial decision one might face. It covers various topics, from budgeting and bill payments to saving for retirement and college education.
4. ProjectionLab:
Created by developer Kyle Nolan, ProjectionLab is a financial planner tool that enables users to create and compare multiple financial plans. Users can input data related to income, expenses, and financial goals, and the tool will map out a pathway to achieving those goals.
Navigating the complex world of personal finance can often feel overwhelming, but with the right tools and resources, it becomes significantly more manageable. Whether you prefer a simple step-by-step approach, a comprehensive flowchart, or a customizable financial planner, a tool is available to suit your needs. By leveraging these free resources, you can confidently take control of your finances and work towards achieving your financial goals.
