Become your own Financial Planner now

Become your own Financial Planner now

Become your own Financial Planner now


In general, a financial plan is a thorough assessment of a person’s present pay and future monetary state by utilizing current realized factors to foresee future income, withdrawal plans, and asset values. Financial planning is very important as it allows you to modify your income into rel life goals. It gives you a direction towards achieving your goals. A good financial planning includes details about your investments, savings, debts, personal finance, cash flow, and all the necessary elements related to your financial life.

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Now, for doing so, many people hire a financial planner or financial advisor who is a professional person, and prepares financial plans for other people. But there are also some people who don’t need a financial planner. When it comes to your personal finances, the money that you tend to spend on a financial advisor could be better spent on your investment. It may not be easy, initially but can still be done as long as you are willing to learn, you can certainly get it by yourself. There are many people who look after their personal finance by themselves and are doing very well. Becoming financially literate can help you to manage your personal finances better and make your life much easier.


In this article, we’ll see what you have to do to be a decent organizer of your personal finances and speculations. And, if you are someone who is looking to fly solo, here’s a list of things that you need to know.

How to do your own financial planning

  1. Determine your financial goals:

Before creating a good financial plan it is important that you first list down your financial goals and be clear about them. If your goals are set and clear in your mind, then you’ll be able to determine your next steps. Forcing yourself to develop goals will help you in determining what you want out of life. Some common financial goals may include, purchasing a home, planning for retirement, paying for children, or a separate amount for unexpected expenses. But, make sure that your goals adhere to the SMART acronym. That is to say, specific, measurable, adjustable, realistic and timely. Determine how much will you need to achieve your main goals and then start working towards it’s fulfillment. Your goals can be short term and long term both.

  1. Track your current financial situation:

Net worth is defined by what you own minus what you owe. In other words, your assets minus your liabilities. Net worth gives you a precise overview of your current financial position and helps you to make decisions in achieving your goals. Because an accurate picture is a key to creating your financial plan. You can check on your current financial position, by creating two columns, one for assets and one for liabilities.

  • Assets: Your assets are what you own, including things like your house, cash on hand, personal property, real estate, investments, retirement funds, savings and checking accounts, etc. next to your assets, write down their value, add the values together and find the total value for your assets.
  • Liabilities: Your liabilities refers to any debt that you owe. This includes things like auto loans, student loans, credit card debt, mortgage balance, car loans, etc. add together all the liabilities and then find out the total value for your liabilities.

Subtract the amount of your total liabilities from your total assets, and that number is your net worth.

  1. Decide on your monthly budget:

While a picture of your assets and liabilities is given by net worth, it is even more important to know how much money comes in and goes out every month. Get a sense of your monthly income, what’s coming  in and what’s going out. Tracking your monthly budget will give you a good idea of what you spend every month. Spotting where your money goes can help you develop immediate, medium-term and long-term plans. For doing so, you can make list of following things:

  • Source of income: Make a list of your monthly income sources like salary, any other kind of fund, etc. Add these sources of income together and find your total monthly income.
  • Monthly expenses: find out your monthly expenses and it will be easy for you to organize them into groups. Add all your expenses together to find out your total monthly expenses.

Subtract the total expenses from total income, and you will get to know that if your income is more than expenses, then you can save or invest your money. But if your expenses are more than your income then you need to make a hold on your expenses and reduce them.

  1. Save your money:

Saving is going to be the most crucial part of doing financial planning. Whatever your objective may be, pay for your child’s education, retire early, purchase a house or any other property for your business, saving is the key by which you can accomplish your goals. Here are some ways by which you can save money:

  • Make it a habit: Make saving your habit. Save an amount that you are comfortable with, after giving out your needs and expenses. Begin with saving ten percent of your income. Saving only a small amount of income in any interest-earning account like savings, CD, etc, will be very helpful because of the power of compounding.
  • Keep an emergency fund: You can ask anyone, especially experts, they will always suggest you to keep some amount aside your income to cover your needs as an emergency fund in case of critical illness, job loss, recession, etc. by doing this you can also save yourself from any financial problems that may occur in future.
  1. Organize and focus on making your financial decisions:

After thinking about your financial goals, financial position, monthly budget, savings and investing, it’s time to discuss financial decisions. There is a method, that is a guideline to follow while making financial decisions, that is, SAVED (Stop, Ask, Verify, Estimate, Decide). Stop and give yourself time to make financial decisions for managing your personal finance. Ask about the costs and risks that would be part of the decision. Verify the given information. Estimate the costs. Decide if the decision is right for you.


It is important to have a financial plan to manage your personal finance, and if you are someone who would want to manage it on your own, then the above discussed points will be beneficial for you in knowing how to become your own financial planner.