If you finished the ‘Building a Budget in 3 Simple Steps’, you’re ready to take it to the next level! A budget is the best place to start but don’t leave your plan behind. Adding a plan to your budget is straightforward.Planning is the fun part because most of us know what we want and when we’d like to have it.

Assuming that your budget includes your needs, a financial plan adds a layer of sophistication to your day to day budget and is how you will be sure to meet your longer term goals. Here are the basic steps:

1. Write down your goals, what they will cost and when you’d like to realize them (a car, debt repayment, first home purchase).
2. Prioritize them.
3. Break them down further into monthly amounts – for example if you are saving $2,400 for a trip and want to go in 1 year, $2,400/12 is $200 per month.
4. Determine which goals you can afford to include in your budget now and set up auto transfers to a separate account.
5. Decide how and when you will incorporate the goals you can’t put in your budget right now, so that they will not get forgotten.

Two more important points:

1. Include any other appropriate household members in the discussion and agree to the plan.
2. Monitor progress on a bimonthly or quarterly basis and communicate often with your ‘team’.