You will find a monthly financial plan tailored to your project in our list of 200+ financial plans
All our financial plans do include a monthly financial plan.
How can you create a monthly financial plan without feeling overwhelmed?
In this article, we provide a free tool to do so. If you're looking for something more tailored to your specific project, feel free to browse our list of financial plans, customized for over 200 different project types here.
We'll also address the following questions:
How can one set a realistic budget for each category of monthly expenses?
What is the best way to track monthly expenses without feeling overwhelmed?
How can one set achievable financial goals each month?
How much should be allocated to savings each month to meet long-term financial goals?
How can unexpected expenses be managed without disrupting the monthly financial plan?
What percentage of income should be dedicated to debt repayment each month?
How can one adjust their monthly financial plan in case of income fluctuations?
The document available for download is a sample financial forecast. Inside, you'll find the calculations, formulas, and data needed to get a monthly financial plan as well as a full financial analysis.
This document, offered free of charge, is tailored specifically to the realities of running a restaurant. If you need a tool for your own project, feel free to browse through our list of financial forecasts.
If you have any questions, don't hesitate to contact us.
Here Are the Steps to Create a Monthly Financial Plan
To skip all these steps, you can simply download a financial forecast tailored to your industry.
- 1. Identify Initial Costs:
List all potential startup expenses such as raw materials, marketing, website development, and miscellaneous costs. This will give you a clear picture of the total initial investment required.
- 2. Estimate Monthly Recurring Costs:
Calculate ongoing monthly expenses including rent, utilities, salaries, and marketing. Summing these will help you understand your monthly financial commitments.
- 3. Project Monthly Income:
Estimate your monthly revenue by projecting the number of units you plan to sell and the price per unit. This will help you set realistic sales targets.
- 4. Calculate Monthly Profit:
Subtract your monthly recurring costs from your projected monthly income to determine your expected monthly profit. This will give you a clear financial goal to aim for.
- 5. Create a Simple Spreadsheet:
Use a spreadsheet to track your monthly income and expenses. This will help you stay organized and monitor your financial performance regularly.
- 6. Allocate Funds for Initial Costs:
Set aside the total amount needed for initial startup costs. This ensures you have the necessary funds to get your business off the ground.
- 7. Monitor and Adjust:
Regularly review your financial plan and adjust it based on actual performance. This will help you stay on track and make informed decisions as your business grows.
What Should Be Included in a Monthly Financial Plan?
Here are the key elements that should be included, all of which you will find in our financial forecasts tailored to 200+ different business projects.
| Element | Description | Purpose | Frequency |
|---|---|---|---|
| Income | All sources of income, including salary, bonuses, and other earnings. | To track total earnings and ensure all income is accounted for. | Monthly |
| Fixed Expenses | Regular, recurring expenses such as rent, mortgage, utilities, and insurance. | To manage and plan for consistent monthly outflows. | Monthly |
| Variable Expenses | Expenses that can vary each month, such as groceries, entertainment, and dining out. | To monitor and control spending in areas that can fluctuate. | Monthly |
| Savings | Money set aside for future use, including emergency funds, retirement, and other savings goals. | To ensure financial security and plan for future needs. | Monthly |
| Debt Payments | Payments towards any outstanding debts, such as credit cards, loans, and mortgages. | To manage and reduce debt over time. | Monthly |
| Investments | Contributions to investment accounts, including stocks, bonds, and mutual funds. | To grow wealth and achieve long-term financial goals. | Monthly |
| Financial Goals | Specific financial objectives, such as saving for a vacation, buying a home, or funding education. | To provide direction and motivation for financial planning. | Monthly |
| Net Worth | Calculation of total assets minus total liabilities. | To assess overall financial health and progress. | Monthly |
| Budget Review | Evaluation of actual spending versus budgeted amounts. | To identify areas for improvement and adjust the budget as needed. | Monthly |
| Emergency Fund | Funds set aside for unexpected expenses or financial emergencies. | To provide a financial safety net. | Monthly |
Our financial forecasts are comprehensive and will help you secure financing from the bank or investors.
Common Questions You May Have
Reading these articles might also interest you:
- How to make a monthly financial plan?
- How to predict the break-even point (in days) for a new project?
- How to conduct a profitability analysis for my product or service?
How do I determine my monthly income for a financial plan?
Start by listing all your sources of income, including your salary, freelance work, and any passive income streams.
Calculate the average monthly income by summing these sources and dividing by the number of months considered, typically 12 months.
Ensure to account for any seasonal variations or irregular income to get a more accurate figure.
What percentage of my income should I allocate to savings?
A commonly recommended guideline is to save at least 20% of your monthly income.
This can be adjusted based on your financial goals, such as saving for a down payment or building an emergency fund.
Automating your savings can help ensure consistency and reduce the feeling of being overwhelmed.
How can I track my monthly expenses effectively?
Use budgeting apps or spreadsheets to categorize and monitor your spending in real-time.
Review your bank statements and receipts to ensure all expenses are accounted for, aiming for a tracking accuracy of 95% or higher.
Regularly update your expense records to avoid falling behind and feeling overwhelmed.
What is the 50/30/20 rule in budgeting?
The 50/30/20 rule is a simple budgeting framework where 50% of your income goes to needs, 30% to wants, and 20% to savings and debt repayment.
This rule helps you allocate your income efficiently without overcomplicating your financial plan.
Adjust the percentages based on your personal financial situation and goals.
How do I set realistic financial goals?
Start by defining short-term, medium-term, and long-term goals, such as paying off debt, saving for a vacation, or retirement.
Ensure your goals are SMART: Specific, Measurable, Achievable, Relevant, and Time-bound.
Break down larger goals into smaller, manageable steps to avoid feeling overwhelmed.
How can I reduce unnecessary expenses?
Review your monthly expenses and identify areas where you can cut back, such as dining out or subscription services.
Implement a "cooling-off" period for non-essential purchases to avoid impulse buying.
Track your progress and reallocate the saved money towards your financial goals.
What tools can help me create and stick to a financial plan?
Budgeting apps like Mint, YNAB (You Need A Budget), and PocketGuard can help you create and maintain a financial plan.
Spreadsheets, such as those available in Google Sheets or Excel, offer customizable templates for detailed tracking.
Consider using financial planning software or consulting with a financial advisor for more personalized guidance.