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PersonalFinancialPlanTemplate1.pdf
Creating Your Personal Financial
Plan
Amy White - Daily Successful Living 1
Copyright © 2017 by Amy White. All rights reserved.
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The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.
Amy White www.DailySuccessfulLiving.com
Amy White - Daily Successful Living 2
How To Set Up Your Personal Financial
Plan I used to do these long-complicated life plans that included every single aspect of my financial life. I quickly realized that it was overkill. When they are too complicated you lose focus and quite frankly, they just don’t happen.
Now my personal financial plan is super simple. I focus on these 5 areas:
• Personal Net Worth • Debt Reduction • Emergency Savings • Retirement Savings • Short-Term Savings goals
Every year, I sit down and calculate my current value in each area and then set goals as to where I want to be in 1 year, 5 years, 10 years and 30 years. For the emergency fund and short-term savings, I spread- out my goals over a 12 month time period.
Simple huh!
Here is a sample of what I do for each of the 5 areas mentioned above:
Current Value of Emergency Fund 9,500 Future Goals 15,000 Value of emergency Fund in 3 months 10,874 Value of emergency Fund in 6 months 12,248
Value of emergency Fund in 9 months 13,622
Value of emergency Fund in 12 months 14,966 Value of emergency Fund in 5 years 15,000
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I’m currently underfunded and only have $9,500 in my emergency fund. My goal is to be at $15,000 by the end of the year. The difference is $5,500 which means I need to save $1,374 per quarter to hit my end of year goal.
I go through the same process for my net worth goals, debt reduction, retirement and whatever short-term goals I’m working on.
My personal financial plan template makes it easy for me to quickly visualize the changes I’ll need to incorporate into my budget to hit my goals.
To make my debt reduction goals, I have to calculate my current debt. Use the “My Current Debt” form to list all of your debt. You will then use this form to make your debt reduction goals.
My Current Debt Total Current Debt 197,652 Mortgage On Home 155,555 Car Loan #1 14,547
Car Loan #2 3,200
Credit Card #1 1,556 Credit Card #2 575 Student Loan #1 16,787
Student Loan #2 5,432
Personal Loan 0 Medical Debt 0 Other 0
Other 0
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One of the most important parts to your personal financial plan is working towards a positive and continually growing Net Worth.
Your Net Worth is your current value in financial terms.
Your personal net worth is calculated by adding up all of your assets and then subtracting your liabilities. (see the next page for an example)
To calculate your net worth, write down all of your current assets. I include anything that is valued at over $3,000. I don't stress about the small things in my home. For example, I personally don't include computers, jewelry, guns, camera's and other medium priced items when I create a personal financial plan. It isn't worth the time.
The important thing is to make sure that you correctly value your assets. Just because you love your car doesn’t mean that it is in excellent condition on Kelly Bluebook. Be realistic. Your goal is to get an accurate value of your net worth, not an inflated valuation based on the original price of an item.
Once you have determined your net worth it is time to set some personal financial goals.
If you have a negative net worth, I would focus on debt reduction to get the most bang for your buck.
If you have a positive net worth, then review your assets to see where you have holes. For example, if you have a lean emergency fund, you may want to prioritize your emergency fund this year and then next year focus on retirement planning and short-term saving goals.
Creating a Personal Financial Plan doesn’t need to be hard!
I go through this process every year and it really helps me stay on track with my budget, spending and saving.
If you have any questions on these forms please reach out to me via my website. I’d love to hear from you.
Love,
Amy
www.DailySuccessfulLiving.com
Amy White - Daily Successful Living 5
Current Estimated Net Worth Assets Personal Residence (Estimated Full Value) 210,000 Vehicles 21,000 Savings Accounts 6,000
Stocks/Bonds/Mutual Funds/ETF’s 12,000
Retirement Accounts 125,000 Other Assets 15,000 Other Assets
Other Assets
Total Assets 389,000
Liabilities Mortgage Loan Balance 155,555
Vehicle Loan Balance 17,747
Student Loans 22,219 Credit Card Balance 2,131 Personal Loans 0
Medical Debt 0
Other Liabilities 0 Other Liabilities 0 Other Liabilities 0
Total Liabilities 197,652
Net Worth (Assets - Liabilities) 191,348
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Personal Financial Plan Date: ________
Current Net Worth Future Goals Net Worth In 1 year Net Worth in 5 years Net Worth in 10 years
Net Worth in 10 Years
Current Value of Emergency Fund Future Goals Value of emergency Fund in 3 months Value of emergency Fund in 6 months Value of emergency Fund in 9 months
Value of emergency Fund in 12 months Value of emergency Fund in 5 years
Current Total Debt Future Goals Total Debt in 1 year Total Debt in 5 years Total Debt in 10 years
Total Debt in 30 years
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My Current Debt Total Current Debt Mortgage On Home
Car Loan #1 Car Loan #2 Credit Card #1 Credit Card #2
Student Loan #1 Student Loan #2 Personal Loan Medical Debt
Other Other
Current Retirement Savings Future Goals Total Retirement Savings in 1 year
Total Retirement Savings in 5 years Total Retirement Savings in 10 years Total Retirement Savings in 30 years
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Current Short Term Savings Saving For: Future Goals Total Short Term Savings in 3 months
Total Short Term Savings in 6 months Total Short Term Savings in 9 months Total Short Term Savings in 12 months Total Short Term Savings in 24 months
Current Retirement Savings - Spouse Future Goals Total Retirement Savings in 1 year Total Retirement Savings in 5 years Total Retirement Savings in 10 years
Total Retirement Savings in 30 years
Current Short Term Savings Saving For: Future Goals Total Short Term Savings in 3 months
Total Short Term Savings in 6 months Total Short Term Savings in 9 months Total Short Term Savings in 12 months Total Short Term Savings in 24 months
Current Short Term Savings Saving For: Future Goals Total Short Term Savings in 3 months Total Short Term Savings in 6 months
Total Short Term Savings in 9 months Total Short Term Savings in 12 months Total Short Term Savings in 24 months
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Current Estimated Net Worth Assets Personal Residence (Estimated Full Value) Vehicles
Savings Accounts Stocks/Bonds/Mutual Funds/ETF’s Total Short Term Savings in 24 months Other Assets
Other Assets Other Assets
Liabilities Mortgage Loan Balance Vehicle Loan Balance Student Loans Credit Card Balance
Personal Loans Medical Debt Other Liabilities Other Liabilities
Other Liabilities
Total Assets
Total Liabilities
Net Worth (Assets - Liabilities)
Current Estimated Net Worth Assets Personal Residence (Estimated Full Value) Vehicles
Savings Accounts Stocks/Bonds/Mutual Funds/ETF’s Total Short Term Savings in 24 months Other Assets
Other Assets Other Assets
Total Assets Liabilities Mortgage Loan Balance Vehicle Loan Balance Student Loans Credit Card Balance
Personal Loans Medical Debt Other Liabilities Other Liabilities
Other Liabilities
Total Liabilities
Net Worth (Assets - Liabilities)
www.DailySuccessfulLiving.com
Amy White - Daily Successful Living 11
