Your lifestyle
This is essentially the spending part of the financial information. Here, you are tasked with assessing how much you are spending. Most people have no idea how much they are spending every month and so are far from even thinking about creating a budget.
Your savings rate
This is the part of the equation where you save. Most people save up for something so the rate at which you can save money affects when you’ll achieve your goal. How much you save is essentially affected by how much money you make every month so every savings plan must incorporate your income.
Your income
You have to make sure that you have a steady source of income in order to achieve your financial goals. That’s why it is always a good idea to assess the job you have now in terms of whether or not it will be able to last you until you achieve your goals. Are there other opportunities for you to earn more money? How you spend your income is mainly affected by the kind of lifestyle you have. And how much you spend because of your lifestyle generally determines if you’ll have room to save.