Financial Plan For Hire A Financial Planner - 1086 Words

If you’re not ready to hire a financial planner, then fear not – I’m going to explain how you can create a realistic financial plan for the next five years of your life without hiring a professional. Of course, there are benefits to having a financial planner do it for you, but if you cannot afford a planner, then you don’t have to settle for not having one at all. Here are nine steps that walk you through creating your own financial plan. Get organized The first thing you should do to create your financial plan is create a â€Å"financial plan† folder on your computer or a physical binder in real life. Organization will be the key to your success because creating a system will ensure you’ll follow through with your financial plan over time.†¦show more content†¦Create a subfolder or separate document and title it â€Å"financial goals†. Write down your specific financial goals for the next five years. This will be personal to you. For example, for me, I want to be out of student loan debt in five years or less. For you, it may be something completely different. Examples of financial goals include: getting out of debt, saving for a down payment on a house, building a six to eight month emergency fund, saving for retirement, and investing to build wealth. Whatever it is for you, decide what you want for your financial life for the next five years. Create a financial statement for yourself Your financial statement is a snapshot of your finances as they stand today. To create this, list all of your assets and liabilities on a spreadsheet (or piece of paper), add up each category, then subtract the liabilities from the assets. This number is your net worth. Use your financial statement to keep track of your financial progress over time. Every couple of months, update your financial statement (copy and paste the spreadsheet into a new tab – or create a new document if you’re handwriting). Over the course of five years, you can track your finances and see how far you’ve come. Be sure to date every financial statement that you create so you have a good indicator of how you’re progressing over time. Create a budget Your budget is your snapshot of your income and spending.