It is never too early to start taking care of your own financial future. Whether your income is now 10,000 or 100,000 rubles, it is better to start financial planning now. To achieve financial goals, you need discipline and intermediate milestones to keep track of progress. For this purpose, a personal financial plan is drawn up – a plan for achieving financial goals and solving those tasks that are solved for money.

How to make a personal financial plan

Before making a financial plan, you need to do some preliminary work:

draw up a family budget, i.e. make an assessment of income and expenses;
optimize income and expenses: increase the former and reduce the latter.

The goal at this stage is to free up additional capital for investment.

When a personal financial plan is drawn up, your goals are placed on a time axis and other inputs are entered: income and expenses, planned inflation, planned deposit rate. The time horizon, i.e. the period of time for which the plan is made, can range from the next 3-5 years to the age of survivorship. We recommend building a financial plan for the long term, so that you can start investing now in goals that seem far away. Creating a personal financial plan does not mean creating a rigid instruction that must be followed. These are professional recommendations that can be reviewed and adjusted at the right time. Once you get the calculations, you will see the achievability of goals by the right moment in time.

Important: When releasing investment capital and building a financial plan, don’t forget to create a financial safety cushion, i.e. a family emergency fund.

Start following your plan

Once you have your financial plan in place, you need to start the main step – investing. Don’t let your financial goals remain written down on paper. Even if unforeseen circumstances interfere with your plans, keep investing as long as it doesn’t take a toll on your family. Remember: a kopeck saves a ruble. If you invest every month 1000 rubles in the simplest financial instrument – a replenishable deposit at 10% per annum, then in 10 years your capital will amount to 198 thousand rubles.

Investing, you will be able to preserve the purchasing power of money, because savings stored at home in the safe, regularly eaten by the invisible enemy – inflation.

Make a financial plan – half a job. It is necessary to regularly review it depending on market conditions, financial products used and new goals that have arisen. BCS Premier financial advisors recommend reviewing your personal financial plan every three months.

Who to contact to create a financial plan

It is best to contact employees of investment, financial companies or banks. We do not recommend private financial experts – there are still too many non-professionals among them in Russia.

Before you start calculating, be prepared to answer honestly the questions in the questionnaire offered to you. You will need to tell us about your age, family composition, level of education and experience with financial instruments, and risk appetite. The accuracy of your answers will determine the accuracy of your plan and, therefore, the achievement of optimal results.

The conditions under which financial advisors make plans may vary. Risk profiling and development of a detailed financial plan with selection of optimal investment instruments are free of charge at BCS Premier.