Personal Financial Planning Tips : How to Create a Financial Plan


My name is Julie Asti. I’m a Certified Financial
Planner, with Asti Financial Management, and I’m going to talk today about how to create
a financial plan. There are actually quite a few ways to create a financial plan, based
on your own financial situation. They can become very complex, or they actually could
be very simple, depending on what your needs are. I’ll start with a simple process. Really,
when you’re looking to create a financial plan, the first thing that you’re going to
want to do, is to create a budget, and I know that, that sounds like it’s a painful process,
and it is to a lot of people, but it really doesn’t have to be, but a budget is a really
important key part of creating a financial plan, because what it’s going to be telling
you, is what amount of income today, you have coming in after taxes, what your expenses
are, your fixed and your variable expenses are, including things that are unforeseen,
like car repairs, gifts, camp for the kids, vacations, things like that, but what you’re
really trying to get, is your bottom line. You’re going to look at your income that’s
coming in. You’re going to look at all of your expenses that you have, and you’re going
to find out what your net is, and your net is going to be, hopefully, a number that’s
in the black, meaning it’s going to be positive, so that after you’ve paid your expenses each
month, you have money left over. If you find when you create a budget, that you have a
negative number at the bottom, really the only two things that you can do, are to increase
your income, or to decrease your expenses, but it’s going to be hard to create a solid
financial plan, if you don’t have a positive number, or at least you’re at a break even,
but really, what you’re going to be doing, when you create a financial plan, is looking
at what your financial goals are. It could be buying a car, in three years. It could
be buying a home in five years. It could be sending your kids to college, in seventeen
years, so they can be short, intermediate, or longterm goals, so really a financial plan
is, all come down to creating a budget, that’s going to be a working budget for you, and
that’s going to be positive, and that’s going to be attached to specific financial goals,
that you would wish to accomplish. The more complex side of creating a financial plan,
goes much deeper. As people find that their situation gets a little bit more complex,
a financial plan grows to encompass things like retirement planning, and making sure
you’re saving enough today, to fund your retirement in the future. Estate planning needs, which
can be living will, and a living trust, risk management, which includes all of your insurance
coverage, your health, your medical, disability, property and casualty. It can also include
tax planning. It can also take a look at investment planning, which is a key piece of your financial
plan, what your portfolio looks like today. How to allocate it properly, how that might
grow in the future, and then it all starts with still creating that budget, so as your
situation gets more complex, there’s a lot more variables that come into play, creating
a really solid, comprehensive financial plan, and to do that type of planning, I would highly
recommend working with a certified financial planner. My name is Julie Asti. I’m a certified
financial planner with Asti Financial Management, and you can learn more about my services,
and my company at: www.astifinancial.com.

12 thoughts on “Personal Financial Planning Tips : How to Create a Financial Plan

  1. Hi Julie,

    I am a financial advisor in Australia. Do you know of any competent software programs for doing financial modelling?

  2. God Good lots of ideas you are sharing!!! thanks for posting the video 🙂 please watch my videos and also learn something 🙂

  3. let me put papers and fancy paper weights so it loks like im busy, really looks like you are an unorganized mess. im a better cpe, cfp and mba. My JD is coming up and you dont have one.

  4. Oh c'mon, dont be mean. Shes sweet. I love the papers and the precisely positioned business cards on a spike!

  5. Information are usefule. It would be better if added demo / pictorial representation instead of keep on talking.

  6. yes sir. when you do penny stock trading get good suggestions from professionals is the wise idea. be mature and do this, These professionals are being with us always to guide us to choose and trade in proper way. have a try and make the most of them 🙂 >-> bit.ly/18JNuqR?=xroyrn

  7. Unfortunately not what I was looking for — this is not "How to Create a Financial Plan" — it is why should you create one and what one is. I already know the why. I could have skipped to the last few seconds – hire a financial planner and not wasted my time with the rest. Please rename this so others don't make the same mistake I did!

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