With the cost of living crisis still on everyone’s mind there has never before been such urgency to building a financial plan than now. However, while it may seem easy to build a financial plan there are a few key steps to take before you begin building a financial plan. 

Doing the prep work will ensure that your financial plan is fit for purpose as well as works for you. Having all the information before you go about making financial decisions is key. Let’s look at the three key steps to take before building a financial plan.

Organisation makes it easier

Being organised will ultimately make building your financial plan easier. To keep on top of your finances and goals you will need to organise your expenses and gain complete clarity on your financial situation. 

Not only will organising your finances help in the early stages of building a financial plan; but it will also help you manage and maintain your plans. Financial planning is methodical in its processes, in order to get the most out of your financial plan you need to approach it in a similar manner. While your financial goals may carry an emotional weight with them, the numbers of finances do not. Keep it organised and keep it methodical to ensure you reach those financial goals. 

Research is essential

Before you begin to build a financial plan you must first do plenty of research. Research financial planners is key. Make sure they are chartered financial planners as well as independent; this means they have access to the whole market of financial solutions. Being chartered also means they are bound to certain industry standards which provides you with the security you need when working with a financial planner.

It is also important to research other aspects of your financial plan. Whether that is relating to the financial goals you have, looking into your current financial status and more. Research is an essential part of building a financial plan. 

Tools that work for you 

The final step to take before building a financial is to understand the wealth of tools available and finding one that works for you. 

Using the right tools to plan and assess your financial situation is key to ensuring you are able to keep on top of any financial challenges. For some people writing down a monthly plan and budget helps them clear their mind of the financial chaos that can come with numbers. 

For others using a spreadsheet allows them to plan on a longer term basis as well as creates the calculations and totals for them. This gives them a quick and easy to see oversight of their financial plans and budgets. Ultimately the best solution for you is one that helps you keep track of finances and manage your goals. 

Once you have taken these three steps you can then begin to build a financial plan and set your long term goals. You can use our handy 2023 financial plan to guide you through creating a personal financial plan. To understand more about the anatomy of financial planning read more here. 

Here at Schofield we work with you to ensure your financial plans are robust and suited to help you achieve your financial goals. Contact our team of chartered and independent financial planners today.