EJM Financial Services

5 Easy Steps You Can Take to Build Your Financial Plan

Everybody has a goal — whether to backpack across the globe or settle down in a lovely little suburb with your family in a beautiful home. 

But what’s the only thing in the way of achieving these goals? Well, there can be a lot of things to consider, but money is definitely a huge factor. 

In this article, we’ll take you through how you can build a personal financial plan, so you can steadily tick off your goal checklist without breaking too much sweat. 

No matter what your goals are, a personal financial plan can help. 

Read on!

Assess Your Current Financial State

Before you can do any actual “planning”, you need to know and understand your cash flow. 

This means looking closely at how much money has come in and out in a specific timeframe. You can take 6 to 12 months of your bank statements and highlight every regular outgoing cost. After that, check all the unusual expenses too. This way, you’ll have an idea of your unnecessary spending. 

It helps to divide your spending between your needs and wants. It’s a practical way to find redundant and useless expenses. This activity also serves as your point ‘A’. With financial planning, you can think about how to arrive at point ‘B’.

Establish Your Short and Long Term Objectives

You now have a starting point for your financial independence path. The next step is to determine your destination. 

Whatever the timeframe, your goals need to be SMART: Smart, Measurable, Attainable, Relevant and Timebound.

A good example that follows this technique: “I will have at least $10,000 saved up in my savings account by 6 months time.”

Having SMART goals enables you to make decisions with clarity and direction and not spend your money on senseless splurging. It also ensures that your goals are realistic and doable, keeping you focused and determined to achieve them. 

Create a Budget

The next step is to create a budget. 

One example of an effective budget that experts recommend is the 50/30/20 budget guideline. This means you spend 50% of your take-home salary on necessities (housing, utilities, transportation, and other regular payments), 30% on desirables (eating out, clothing, and entertainment), and 20% on savings and debt reduction. 

However, budgets are entirely personal and this one may not work for you. A financial planner from EJM can help you determine the right budget for your circumstances and ensure you are still tracking towards your goals for the future. 



Think About Your Debt Strategy

Nobody likes to think about debt, yet acquiring it is often unavoidable – especially if you own a home.

When the time comes, you need to develop an excellent debt strategy. Consider making a plan to pay off your high-interest debts. Whenever you’re having trouble paying off all your loans at once, you can try to consolidate your loans into a more manageable loan.

You probably won’t be able to pay them off overnight but a plan can help you feel great about becoming debt-free sooner!

Don’t Delay Investing In Your Super

Start investing in your super as early as possible. You’ll want to have some money set up for your retirement, ideally for at least 20 years. 

Saving money at an early age helps ensure that you have enough money when you retire.

Whether you want to start contributing more to your super or changing your growth option to increase your balance, seek personalised superannuation advice so you can plan for your retirement the right way. 

Bottom Line: A Good Financial Plan Takes the Weight Off Your Shoulders! 

A financial plan can help you even in the most complicated of life stages. 

If you’re ready to achieve more with your money, contact EJM’s trusted financial planners in Melbourne. 

EJM Financial Services offers comprehensive packages for people looking to take control of their finances. Our financial services in Melbourne have helped many Australians put their money to good use so they can live their lives how they see fit. 

Get in touch with us today!

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