Build your own financial plan: A step-by-step guide

This series of how-to articles makes it easier to create a personal financial plan and get your money in order. In nine steps, you have a nice framework to build on for the rest of your life.

Maybe you’ve tackled a few of the steps, or maybe you haven't started a financial plan. Don't worry. We’ve put it all in one place for you. Just start with one task and keep going. (Or just tackle the whole thing on a long, rainy weekend with a big pot of coffee and a dog at your feet.)

Let’s get started.

Set financial goals.

It’s always good to have a clear idea of why you’re saving your hard-earned money. Think it through using our financial goals worksheet (PDF).

Create a budget.

Consider this your monthly cash flow and savings/investing plan. Give yourself permission to decide where and how to send your money with our budgeting worksheet (PDF).

Plan for taxes.

It can go a long way toward helping you keep more of your money next year. Our tax planning worksheet (PDF) will help you think through potential income tax credits and deductions.

Build an emergency fund.

All the planning in the world won’t help if life throws you a curveball and you’re not prepared financially. That’s where an emergency fund comes in handy. Our calculator will help you decide how much you need.

Manage debt.

Understanding and managing debt is a key part of creating a financial plan. Use our debt management worksheet (PDF) to log your numbers and find the right balance.

Protect with insurance.

Life can change in an instant. People with a good financial plan hope for the best, but plan for the unexpected. Insurance helps with that. Use our disability and life insurance worksheet (PDF) to log your coverage and identify any gaps.

Plan for retirement.

Even if it’s a long way off, think about what you want your money to do for you when you retire, and create a plan to make it happen. Our retirement savings checklist (PDF) will help.

Invest beyond your 401(k).

To reach your mid- and long-term goals, take your savings strategy and put an engine behind it. That’s what investing can do.

Create an estate plan.

You don’t have to be wealthy, old, married, or a parent to need an estate plan, which also lays out who makes financial and healthcare decisions for you if you can’t make them yourself.

Finished? Here’s when you should review your financial plan.

Take a fresh look at least once a year or after a big life change:

• Significant change in income
• Job change
• Change in family dynamics like having a baby or adopting, getting married, divorced, or losing a spouse/partner
• Selling or buying a home
• Inheritance
• Unexpected debt
• Change in financial goals

 Tip: Around age 50, you may want to include long-term care insurance and expand your plan to add income in retirement.

Next steps