How to create a financial plan that works for you

A financial plan that works for you is one that considers your unique needs and circumstances.

Start by evaluating your current financial situation and creating a budget. Make sure to account for all of your expenses, including fixed costs like rent or mortgage payments, as well as discretionary spending. Be honest with yourself about how much you can afford to save each month, and make a goal to gradually increase your savings over time.

If you have any outstanding debts, be sure to include them in your budget and make a plan to pay them off as quickly as possible. Working on your debt consolidation plan concurrently with your savings plan will help you stay on track financially.

Last but not least, be sure to review your insurance coverage and make

In this article, we will cover how to make a financial plan that works for you and your circumstances.

― Yogi Berra

What is a financial plan

In short, this means a plan of how to manage and grow your financial assets vs your liabilities to achieve your short, medium and long terms goals.

It’s your road map to help you understand where you are now, where you want to get to, and the gap between the two. With this information, you can determine what changes you might need to undertake to get to your destination. Without a financial plan, you might well be trying to get somewhere in the dark with no idea whether to turn left or right.

Would you try and go on a long journey without some sort of map? I doubt it. You would likely ask people who have been to your destination before, look for directions, get a map, figure out how long it might take and what you might need to take with you.

Stopping now and again to ensure you are still going in the right direction, for refreshments and/or to check if you still want to go there.

Why you need a financial plan

Well if you don’t have one, where will you end up?

Without a plan, you are at significant risk of wandering from one place to the next with little to show for it or idea how to get to where you want to go.

How often have you gone out with or are meeting up with friends, and the first question is “right what’s the plan? When and where are we going to meet? What will we do when we get there, who else will we encounter, and where do we hope to end up.

Yes, some serendipitous nights out are good when crazy things happen with no plan, but are you really saying that that will work for your finances and life?

Much better to have an idea of the things you would like to do. When, where and with whom and then work towards that, leaving it all to chance.

4 steps to start developing a financial plan

So, to prevent potential lack of planning chaos let’s start with a few basic financial planning ideas

  1. Start with a written GAME Plan. Get a pen and paper and write down all the things you would like to achieve in 1, 5, 10 years and the big one in your lifetime. Having a clear written plan for your goals can keep you from going off in the wrong direction. Have a go a figuring out what each goal might cost in terms of time and money to reach it.
  2. Review where you are right now in terms of your net worth, income vs spending, saving and budgeting. Are these under control or all over the place? Do you even know? Do you have any debt, is it being managed or left to get worse? What’s your plan for the debt? How are you continuing to build your financial knowledge?
  3. What could you do to reach your goals and or build your wealth sooner?  Earn more, spend less? Could you save more and invest more or start doing this? Could you automate any of these things to take the decision making and temptation not to do it away?
  4. What could you do right now to set you on the right track? Write a plan, automate your savings, work out how much is enough? Work on a side hustle to earn more money.

Three potential ways to get help with your financial plan.  

  1. Have a go at it yourself – some useful book links here.
  2. Work with a financial coach to help you think through your ideas
  3. Find a financial advisor and get them to help you design a plan for you.

If you are in debt crisis then Stepchange might be a good place to start.

I need and financial plan: Start now get perfect later

Sitting down with a pen and paper will be a great start. Don’t worry about it being perfect or unsure of exact figures. Don’t let perfect be the enemy of a good enough plan, or even worse, not doing it. Have a go and keep iterating it as you learn more. Start now; get perfect later.

Anyway, those are my thoughts on financial planning if you would like help with your planning sign up for our wealth-building newsletter.

FAQ: I need a financial plan

Can I do my own financial planning?

Yes. You can do your own financial planning by creating a budget and sticking to it, investing in a solid savings plan, and consulting with a financial planner or coach when you have some more complex questions to answer.

Creating a budget is one of the most important steps toward effective financial planning. A budget will help you track your expenses to see where your money is going and make adjustments as needed.

It’s also important to save for emergencies; having at least 3-6 months’ worth of living expenses will give you peace of mind in case of unexpected events.

When you’re ready to start investing, consult with a financial planner or coach who can help you choose the right asset strategies for your needs and goals.

What is a financial plan and how can I make one?

A financial plan is a document that outlines your goals and strategies for achieving them. It can help you stay organized and make informed decisions about your money.

There are many different aspects to consider when drafting a financial plan. Key topics include budgeting, saving, investing, insurance, and estate planning.

The specific steps you take will depend on your situation and goals.
If you’re not sure where to start, there are many helpful resources available including on this site.

The most important thing is to get started and be proactive about your finances. With a little effort, you can create a plan that will help you achieve your financial goals.

What should be included in a financial plan?

A sound financial plan should include both short-term and long-term goals and a projection of your income and expenses.

It’s important to start by determining your net worth–that is, your assets (property, savings, investments, etc.) minus your liabilities (mortgage debt, credit card debt, etc.). This will give you a snapshot of where you stand financially.

From there, you can create a budget that lays out how much you’ll need to save each month to reach your goals. You should also establish an emergency fund to cover unexpected costs.

And finally, don’t forget to invest for the future! Retirement savings accounts are great ways to save for retirement.

Why should I have a financial plan?

There are many reasons why you should have a financial plan.

First and foremost, a financial plan can help you reach your short-term and long-term financial goals. Without a plan, knowing how much money you need to save or what investments to make to achieve your desired results can be difficult.

A financial plan can also help keep you accountable. Having a written plan serves as a reminder of your goals and acts as motivation to stay on track. Additionally, seeing your progress over time can give you the confidence boost you need to stick with your financial plans.

Another key benefit of having a financial plan is that it can help reduce stress and anxiety surrounding money matters. Money is often one of the most stressful parts of our lives. A financial plan will help take away a lot of these money worries.

Financial Life Coaching & Planning
Five Steps To A Solid Financial Plan
Five Steps To A Solid Financial Plan


No savings, No pension, No plan? Click here to change all that.

Would having a GAME plan or financial coaching help understanding your money and life needs? 

  • Is your life, job and financial admin in a mess?
  • One or two months away from financial disaster if you quit?
  • Not enough time or money to achieve what’s most important to you?
  • No idea how to plan, save and invest to become financially secure?  

What’s likely to be the outcome if you don’t make some serious financial plans and start saving?

Without making clear plans, you are at risk of having nothing to fall back on when things change for the worse. 

Financial life coaching and planning will give you the support, guidance, and accountability you need to succeed with money and life building your savings and wealth.

  • Get you financially organised
  • Build your savings cushion for when things go wrong
  • Help you figure out how much money is enough
  • Help you understand and build wealth to never run out of money

Start building your money confidence now because waiting will only make it more expensive and painful to achieve later.

Plan, build and enjoy your money.

Taking you from life and financial crisis to happiness.

Contact us here for a free chat about building your money confidence and what options you might have for creating wealth in every area of your life.

alan@financiallyhappy.ltd

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