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Making A Financial Plan - What are Some Things to Consider

Updated on August 11, 2013

Financial Planning, where do you start?

Making your own financial plan is very important to your financial success.  Many people don't know where to begin, but really it is very easy to get on the right track toward maximizing your finances, and setting goals.  Learning to find ways to meet those goals will really get things growing, and your net worth will be increasing over time. 

Financial Plans are working documents.  Some people are more flexible and others are more focused and even sometimes a bit rigid in their thinking, etc.  Your own financial plan can reflect your own personality and outlook on life.  In fact, that is the best way for it to be, so you can stick to it, and have it be the more realistic for you.  You can work with an adviser to make a financial plan, or use a computer program or planning site on the web, or come up with one on your own.  Some people are self taught, and just read and research the information and are able to do it themselves.  However you get it done, make sure you do get it done.  Or just know that it comes highly recommended at least.


Start with some basic financial documents

To begin with, you want to start with your financial documents.  If you were to speak to an adviser about your finances, this is what they would ask for.  They would ask for your income tax forms, very likely, or a summary of your investments, and any other pertinent information like retirement plans or insurance policies. 

If you do decide to go with an adviser, one of the benefits will likely be that they will help to come up with a detailed written plan for you.  This plan is often called a personal financial analysis.  This document will summarize all the information that you have provided.  It very likely will include an overview of of different financial planning strategies that could apply to your personal situation.  It will recommend particular investments and/or other steps that you ought to take to achieve your financial goals and objectives. 

Not all people may like that approach however.  You can just go a more simple route and request a letter which summarizes things for you.  It will summarize your goals that you are working toward, the approaches to investing you want to take, and recommended investments from your adviser.

Banker's Hall
Banker's Hall

Key things

The main things to consider when presenting information to an adviser or just doing it yourself include things like your financial situation currently, and financial goals. Share your ideas on considerations for college expenses, and retirement, wills or trusts, and estate planning. The more information you have gathered and considered and thought about, can aid in the process.

You want to consider your risk tolerance, and you will likely be asked about this by an adviser. So think about it before hand. I personally don't like taking a lot of risk at this point in my life, financially. I don't want to make a "gamble" and would share that with my adviser. They will analyze the current situation, and ask or help you to prioritize your goals. Deciding on strategies that will get you where you are headed is next. Look for the best ways to build and manage your money. Decide on how to implement the strategies is next, and waiting for some time to pass and then evaluating how everything is going. After that point, you need to review everything, and adjust if necessary to tweak things to be even better, so you can build on your dreams.


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    • oceansnsunsets profile image

      Paula 6 years ago from The Midwest, USA

      Thanks so much, Phoenix!

    • oceansnsunsets profile image

      Paula 6 years ago from The Midwest, USA

      Thank you, Beautifullife!

    • PhoenixV profile image

      PhoenixV 7 years ago from USA

      Great hub and advice, voted up!