Free Personal Financial PlansMaking your free personal financial plans: A financial plan should have a defined value and a time-frame to achieve it. If you fail to plan, you are planning to fail! 1. Find out what you are starting with: If you do not know where you begin, you cannot really begin the journey. If you know the value of your investments, that's great! You can download a sample spreadsheet from the link at the bottom of this page. Enter the value in the spreadsheet. 2. Define your goals: What is your aim in making the personal financial plan? Take 15 minutes to close your eyes and think about the things that matter to you and for which you would like to provide. These could be:
3. Quantify your goals: Set a monetary value to each of your goals. Since many of these goals require a sum of money each year, set a value for each year, in which case a spreadsheet is invaluable. In the first column, enter the years starting from 2009. In the next column, enter the amount you would need for the education of each child, year by year. And so on for each goal you want to provide for. Next add up the amounts required for each year, starting from 2009. 4. Set a time limit for your goals. Some goals will be time bound in any case (for example, education of children), you can be flexible with others (for example, your vacations). Be realistic, though it does not harm to dream. 5. Work out the inflation adjusted amounts you would need. Estimate inflation for each goal. You only need to be approximately right, as you should plan for a 10% surplus to cover surprises. 6. Next enter amount you have saved in a cell below the table you created. If you know the rate of interest you are earning on your investments, enter that in a cell as well. Next calculate the shortfall for each year. 7. See how you can tweak your investment asset allocation to meet your goals. Your free personal financial plan will be sketchy - it is just not possible to plan for varied needs in a single web-page, but I hope you have a better idea of how to plan. Do take the help of a qualified financial planner to refine your plan.
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