Building Your Own Personal Financial Plan will be crucial for your success

Building Your Own Personal Financial Plan will be crucial for your success

Building your own personal financial plan will be crucial in your success in managing your money and investments. It also helps you visualize your path to a brighter financial future.

A Personal Financial Plan Doesn’t Need to Be Complicated; sometimes you might feel intimidated about creating a financial plan. It sounds a bit challenging at first.

But here’s the thing.

Anytime you hear finances and plan, you might assume it’s some elaborate, detailed framework. That was in my head when I started figuring out my own roadmap.

It certainly can be quite detailed, but you do not need some 25-page manifesto of highly complicated ideas right from the start.

Even if you do not have a background in finances, you can take some simple steps on your own to make a plan that works for you.

But, if you do want a more in-depth personal financial plan, don’t be afraid to ask for help. Let’s schedule an appointment and look more into that!

Financial planning professionals and/or advisors sometimes get a bad wrap, but there are many who are really good and can help ease the stress of ensuring you are on the right path financially.

Your Financial Plan Should Really Do Three Things; When you are first creating your personal financial plan, it should aim to accomplish three important things:

  1. Help you see what’s going on currently (Analyze)
  2. Help you organize where you want to go (Goals)
  3. And help guide how you are going to get there (Steps)

If I dive in a bit deeper on these simple concepts, you’d consider doing something like this:

Analyze your current state of finances

Am I saving money? Is my spending out of control? What does my retirement look like? Do I have a will? Am I paying off any debt? No matter how bad it might be, these numbers and information need to be known.

Write down your specific goals:

What do I want to accomplish in a year, five years, ten years, and beyond? Many times, your future goals may shift, but it’s good to get this on paper and know what you want to work towards. You don’t need to focus on every goal, you can identify one or two at first. You don’t want to overwhelm yourself.

Actionable steps to get towards those specific goals:

Under each main goal, you can add some simple actionable steps to how you are going to get to that goal.

As you get more comfortable with your process and your first set of goals, you can continue to build on it.

Also, adjusting where need as you accomplish goals or something changes.

I started with four main areas in my own plan: Saving Money, Investing, Paying Debt, and Improving Career Worth. Each, of course, was then broken down into more specifics.

While your financial plan should accomplish the three things above, there are some important steps in actually creating your plan.

Written by Peter Kwadwo Asare Nyarko
Financial Literacy Advocate & Educator, Author. Founder & CEO, PKAN Consulting. Executive Director, Center For Financial Literacy Education Africa

Contact PKAN Consulting team, and let’s help you out with your personal finance planning, business financial planning, group financial planning and coaching.