How to build your own financial plan in under 1 hour
Having a financial plan is critical to managing your money. With the template I built, you can build your own plan in under one hour.
Someone I worked for had a saying, "Plan beats no plan."
He's right. Especially when it comes to taking control of your financial future 💵. Having a plan beats no plan, hands down, every single time.
There's the problem. Most people don't have a full financial plan in place that they can execute that is uniquely tailored to their specific goals 🎯.
I'm here to fix 🛠️that for you.
My mission for 2023 is to help 100 people build a financial plan - for FREE. Seriously, no cost and no obligation.
My larger goal is to help 10,000 build a financial plan by the end of 2025.
Why? Because I know how empowering 🧘♂️ it is to take control of your financial future, and I want you to experience that feeling.
Imagine what it would feel like to have a plan for your money that would help you accomplish your goals. Whether to build wealth, pay for an expensive purchase, or retire early.
Building a financial plan can seem like a daunting task, especially if you're short on time. However, it's important to remember that having a financial plan is critical to achieving your long-term financial goals.
Fortunately, creating a financial plan doesn't have to be a time-consuming process. In fact, you can build a financial plan in under an hour using a template that I created. That template will help you:
- Create a budget: A budget is a plan for how you will spend your money. It's an essential component of any financial plan. To create a budget, start by tracking your expenses for a month. Then, categorize your expenses into groups such as housing, food, and entertainment. Finally, create a spending plan based on your income and expenses. This will help you stay on track and ensure you're spending your money in a way that aligns with your goals.
- Prepare budget forecasts: The second tab in my template will help you forecast various scenarios and their impact on your budget. Maybe you want to buy a more expensive house. You can plug in those increased costs and see how they will impact your monthly budget.
- Set up an emergency fund: Emergencies can happen anytime, and having an emergency fund can help you avoid financial setbacks. Unfortunately, a large percentage of Americans don’t have $500 saved up. An emergency fund is money set aside to cover unexpected expenses such as car repairs or medical bills. Aim to save at least three to six months' worth of living expenses in an emergency fund. This will give you peace of mind and help you stay on track with your financial goals.
- Determine your net worth: Knowing your net worth is an important part of building a financial plan. Your net worth is the difference between your assets and your liabilities. To determine your net worth, add up the value of all your assets, including cash, investments, and property, and subtract your liabilities, such as loans and credit card debt. This will give you a clear picture of your current financial situation.
- Determine how much life insurance you need: I’m a huge fan of life insurance - both term and whole life. It is easy to be a fan when you have seen policies pay out after the loss of loved ones. That has happened twice in my immediate family. Using an industry-standard formula, the template will help you determine the right amount of life insurance.
- Establish how much you have to invest: Inside my template, there is a tab that will calculate your investable dollars. That is money that you have right now, above and beyond your emergency fund, that you could be investing.
- Develop a goal for income in retirement: The last tab in the spreadsheet helps you figure out how much money you will need to have saved up to retire at an age you determine and with the amount of income you will fill comfortable having.
By following these steps, you can create a financial plan in under an hour that will help you achieve your financial goals. Remember, a financial plan is essential to achieving financial success, and it's never too late to start building one.
When setting financial goals, it's important to remember that they should be specific and achievable. For example, instead of saying, "I want to save money," set a specific goal such as, "I want to save $10,000 in the next 12 months." This will give you a clear target to work towards and make it easier to track your progress.
Finally, it's important to review and adjust your financial plan regularly. Your financial plan should be a living document that changes as your life and financial situation change. Make sure to check in on your progress towards your goals regularly and adjust your plan as necessary. This will help you stay on track and ensure your financial plan always aligns with your goals.
By following these simple steps, you can create a financial plan in under an hour that will help you achieve your financial goals. Remember, a financial plan is essential to achieving financial success, and it's never too late to start building one.
Want to build your own financial plan? Click the button below to get started.