Do you want to build a financial plan from scratch without hiring a financial advisor?
Learn from the best. In this blog we will talk about how to take control of your money especially tailored for beginners and future-focused individuals.
1. Introduction: Why Everyone Needs a Financial Plan.
A financial plan is not only for the wealthy or those approaching retirement. It is a road map for your life. regardless of your age or wealth. Whether you’re a college student, a young professional, or a new parent, knowing where your money goes and how to make it work for you is essential.
Most consumers believe that financial planning entails hiring an advisor or purchasing expensive software. However, creating your own strategy can be simple, intuitive, and empowering.
Let’s break it down in this guide, which demonstrates how to create a financial plan from scratch without the need for a financial counselor.
2. Define Your Financial Goals — Short, Medium & Long-Term
Start with a question. what my want to do a work that i don’t have to do manually.
🎯 Break Your Goals Into Categories:
Short-term Goal: Emergency fund, a new phone, travelling to a new place.
Medium-term Goal: Buying a vehicle and home down payment.
Long-term Goal: Retirement, children’s education or starting a business.
Setting goals always keeps your financial plan purpose-driven and measurable with time.
3. Understand Where Your Money Goes
Before you plan your finances, you should understand your cash flows. Track every rupee/dollar you earn and spend daily.
Here’s how to Do It in proper way:
Use apps like Walnut, YNAB, or just a Google Sheet.
Categorize your spending: rent, groceries, eating out, shopping, and lastly Savings.
Do this for at least 2-3 months to get an acual idea.
Once you know where your money is going, you will find out many ways to manage it
4. Create a Simple Monthly Budget — The 50/30/20 Rule
This rule will help you out in managing and devision:
| Category | Percentage | Examples |
|---|---|---|
| Needs | 50% | Rent, bills, food, transport |
| Wants | 30% | Subscriptions, dining, hobbies |
| Savings/Debt | 20% | Investments, emergency fund, EMIs |
Apply this rule to get better devision of the money and spending. The goal is to make budgeting a habit. offcourse it shouldn’t feel like a punishment.
5. Build Your Emergency Fund to avoid bigger fianancial losses.
Your financial plan is incomplete without a safety shield. An emergency fund gives you a breathing room when life throws bad surprises towards you.
💼 Start Small:
Aim for ₹50,000–₹1 lakh initially.
Gradually build it up to cover 3-6 months of living expenses.
You can Keep it in a liquid savings account or a money market fund.
Emergency funds reduce your dependency on loans or credit cards during crises and helps you to breath without breaking your capital.
6. Pay Off your Debts Strategically!
Debts are the huger obstacles in our life and it can lead us to a big financial problem.
These 2 methods will help you out to sort it:
Debt Snowball: first pay off your smallest debts first.
Debt Avalanche: Pay off your highest-interest debts first.
Also focus on clearing credit card balances, personal loans, and buy-now-pay-later accounts because they are also one sort of debts in your life.
7. Start Saving & Investing early.
- start a small SIP in a mutual fund (start as low as ₹500/month).
Invest in a PPF or ELSS for tax-saving benefits. it will give you longer benefits.
Consider low-cost ETFs if you’re in the US or global markets. it will give you more freedom.
Make investing a habit, not a once-a-year event so that it will give your life more fitness.
8. Understanding Importance of Insurance!
Financial planning also means protecting what you’ve built. Insurance is not an expense. it’s a shield against big spendings
Health Insurance: For unexpected medical costs.
Term Life Insurance: For family protection.
Car/Home Insurance: To protect physical assets.
9. Track & Adjust Your Plan!
Your first plan just sets the way and you have to change your plans as your life changes:
Check your budget monthly as required.
Review investments/losses/spends every 6 months.
Redecide your goals annually.
Also, adjust your contributions, reallocate funds, and evolve your plan as your life grows.
10. Stay Consistent and Avoid Lifestyle Creep!
As your income grows, you feels like to spend your money of lifestyle creeps and you spend without tracking and behind such things which will not give you the financial freedom
🚧 How to Stay Grounded:
Increase savings/investments with each raise and make it your assets.
Delay luxury purchases and focus on building the wealth
Compare your current self to your past self and not to others.
Consistency is your secret weapon in financial planning.
11. Tools & Apps for Financial Planning:
Few Low cost or no no cost apps you can use to manage your expenses:
Google Sheets – Customizable and shareable.
Money Manager App – Daily expense tracking.
ET Money, Groww, Zerodha – For Indian investors.
YNAB, Mint, Robinhood – For international users.
12. Sample of Beginner Financial Plan Template.
| Category | Monthly Amount (₹) |
| Income | 50,000 |
| Needs (50%) | 25,000 |
| Wants (30%) | 15,000 |
| Savings/Debt (20%) | 10,000 |
| Emergency Fund | 2,000 |
| SIP Investments | 5,000 |
| Debt Repayment | 3,000 |
13. Common Mistakes to Avoid!
- Ignoring small expenses.
Relying only on fixed deposits or savings accounts. No investments in Future options.
Ignoring inflation and insurance terms as it goes higher once you starts getting older.
- Starting Investing after 30’s
Learn from others mistakes so your journey will be more smoother.
14. Conclusion: Start Small, Stay Consistent.
You don’t need a perfect financial plan but you need a personalized one. You don’t need a financial advisor.
but you need awareness and action f this financial terms .
The earlier you start building a financial plan from scratch, the more you will secure your future. Don’t wait for the perfect time.
And remember: every small step taken in your early days will give you the power after some time to take bigger financial awards.