How to Make a Personal Financial Plan, Beginners Must Know!

Personal Financial Plan - Financially free of course is everyone's dream. Financially free is a condition when a person is able to meet basic needs, such as food and clothing with his own finances. Before becoming financially free, of course, we need to know how to make a good personal financial plan. We need to strengthen mindset and have a careful plan before making a personal financial plan.

Regardless of what job and how much income a person has, making a personal financial plan is one strategy to become financially free. However, there are still many people who do not know how to make this plan properly and correctly.

Also Read: Take a Note, 8 Negative Impacts of a Wasteful Lifestyle


How to Create a Personal Financial Plan

Creating a personal financial plan is the first step that can be taken to achieve financial freedom. Of course, everyone has different goals in making financial planning, it could be for emergency funds, education, benefits in old age, or just wanting to have regular financial management.

The goals that have been made above can certainly be achieved if you follow the five easy ways to make a personal finance plan below.

1. Create Personal Financial Plan Goals

personal finance plan

Determine future financial goals to make it easier to strategize. These financial goals can be set for the short term, medium term, or long term depending on the goals to be achieved.

For example, you can divide the time periods into 0-1 years, 2-3 years, and 4-5 years. Parents can also divide the needs into groups to be achieved, such as the need for home renovations, children's education costs, emergency funds, buying a new vehicle, going on pilgrimage, traveling abroad, and so on.

By making specific financial goals, you already know how much funds should be allocated to savings with the goals you want to achieve. Parents can also develop strategies that are appropriate and suitable to meet these needs.

2. Checking Financial Condition

Actually, in making a good financial plan, it doesn't matter how old you are and how much income you get each month. This is because everything is not measured by how much income, but whether from that income can meet all the necessities of life.

Analyze and understand how your current financial condition is, how much income you receive and how much you spend each month? Have you been able to pay off all expenses? If not, it could be because there are still many expenses that are not actually a priority or the habit of managing finances is not good and right.

To make things easier, keep a record of all the income you receive along with the expenses. This method can make it easier for parents to understand how much net worth they have.

3. Develop a Personal Financial Plan

personal finance plan

As explained above, parents need to record all income and expenses every month. Prepare a financial plan in the form of a complete list of activities, goods, and other needs that will be used. No matter how small a financial transaction, parents must record it so that the goals they want to achieve can be realized faster.

This note-taking activity can avoid wasteful spending and keep track of where the money is used. To make things easier, Parents can record expenses using a financial application. One of them is the whiz finance app, which can help you record your income and expenses and manage your finances well!

Example of financial planning:

  1. Child education insurance premium of IDR 500,000 per month
  2. Monthly spending of IDR 1,000,000 per month
  3. Saving IDR 1.5-00.000 per month

4. Implementing the Prepared Financial Plan

After doing the three steps above, this is the main way that parents can do it. To achieve the goal, of course, it takes a strong will and determination. All will not be achieved if it is not consistent.

Reduce unnecessary expenses and move to more priority needs. Maybe this will be difficult to do if you are not used to it. However, nothing is impossible, right? Always push yourself to remain consistent in carrying out the financial plans that have been made.

5. Evaluate and Improve Planning Periodically

As time goes by, we never know how the financial condition will turn out. There are times when urgent needs must be paid immediately, for example hospital costs, accident costs, affected by employee efficiency, many unexpected expenses, and so on.

If many unexpected things happen, then you need to re-evaluate the condition of the latest financial plan that has been made and perfect your next financial plan even better.

Also Read: Note This, 7 Millennial Family Financial Planning Tips


Well, that's five ways you can do to make a better personal finance plan. Doing financial planning is not an easy thing, especially for beginners who are not used to managing finances. However, don't worry, because the more often parents try to get used to and encourage good financial management, the personal finances will also be better in the future. Good luck!

COME, MANAGE YOUR FINANCES WITH WHIZ!