Personal Financial Plan Example to Help You


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Sometimes you may think a financial plan looks like a budget or a list of what you intend to accomplish. This might be true but when you are confused about this, you can ask your financial advisor to produce a personal financial plan example to help you understand what you need to do.

Your advisor can show you what it looks like and perhaps help you create one.

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What is a personal financial plan example?

A personal financial plan example is more of a budget; it is a written comprehensive list outlining your cash at hand, savings at the Bank your properties as well as liabilities and showing a strategic means of acquiring financial goals;

The essence of writing a financial plan example is to give you a clear understanding of how to control your financial affairs when trying to achieve your laid-down goals.

The effect of it can lead to financial freedom as well as a quality lifestyle and the establishment of a future legacy through investment.   

Creating a personal financial plan example

How do we achieve goals, those things we desire to have? Those things we dream and imagine we have but due to lack of funds, we are limited to living in fantasies.

It is not about saying it but more about putting it into action. It is one thing to be familiar with personal financial planning and it is another thing to put it into practice.

Hence, if we desire to achieve our goals then we need to act. Below is an example of how to create your personal financial plan.

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1. Understand your current financial capacity

At present, what are you living on; what you have at hand will determine the foundation of your plan. You can get an accurate calculation of this by adding all your assets and subtracting them from your liabilities.

With this, you can have your net worth, which gives you knowledge of your overall financial capacity. This available result gives you the power to start your financial planning.

Your liabilities are your debts such as bills that are due for payment. The loans you took to pay for your kids’ education, buy a home, and set up a business.

Certainly, liabilities are expenses that will reduce your available cash; therefore, you may not need to acknowledge them much in your financial goals.

2. List out your requirements

Since personal financial planning has to do with utilizing the available resource to achieve future goals. It is time to list out all that you would want to achieve from the present to the future.

While doing this understand that you can use your available resource to create further cash to help in processing your plans.

For instance, the result of your assets after subtracting liability shows you have $500,000. Now your financial plan shows you need to buy a new home, get a spouse, build a shopping mall for her, and save for your children’s education.

$500,000 will not be enough to achieve all these; therefore, you can do well by dividing this amount. Invest one-half in something that will bring immediate cash. Then use the second half to start building your plans.  

3. Identify your goals 

What do you want to achieve? Probably it is something that will last into the future. Identify both short-term and long-term goals that can be accomplished at any time.


These goals are what will yield future financial freedom.  Talking about long-term goals, you need patience, determination, and hard work because it may last into your retirement age.

Then the short-term goals become realistic within a short period maybe in a few months or years. However, you also need to understand that when identifying those goals you consider your available fund.

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3. Monitor your tax and expenses/payment

You cannot avoid some necessary payments, for instance, you must pay your tax, and pay your bills on light, rent, and security.

These payments are permanent and you cannot escape their payment. But think of your groceries, entertainment, visit, charities, and the like, you need to monitor them.

Monitoring your expenses can help you control your available cash and channel them to the purpose they are needed. The purpose is nothing but the goals you are intending to achieve.

4. Make room for savings

Notwithstanding your present financial capacity, you also need to save for emergencies. It is true that you are working with the available cash but we are talking about saving from your daily income.

While you are working with the available cash there is still a means of income. This is to avoid taking loans to solve unexpected problems.

Savings can also give you confidence and assurance that there are some funds available elsewhere.   

5. Draw your retirement goals

These include how you plan to live your retirement days. As time goes on, months and years pass by, as is normally the case human being begin to depreciate in strength.

You need something to rely on when you are no stronger in active work. Therefore, your retirement goals need to be included in your list.

 It could be a sort of long-term investment that may begin to yield income during retirement.

6. Financial security

When drawing examples of your personal financial plan make space for financial protection. Obtaining insurance coverage against financial loss is important; it is a means of protection against unexpected loss.

It could be insurance on property, accident, or life; the company will compensate you for the loss. Where there is no financial protection you are likely to suffer those losses alone which may warrant you starting afresh.

7. Risk Management

When drawing your personal financial plan example also note that risk can occur. For this reason, you need to prepare for it and avoid being taken unawares.

Risk management might be similar to financial protection but there is a difference. In risk management, you might need to prove your ability in the investment you make.

It involves how you either succumb to loss or you bravely tackle it and forge ahead.  For instance, It involves how you tend to handle the damage on a purchased product.

Finally to Help You

One Important help a personal financial plan example can provide you is to guide you on the process of effective utilization of your available resource. Again, to help you understand what plans you have achieved or will letter achieve with your finances

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