Suppose you want to manage your finances effectively and regularly increase your income, make serious purchases and not save every dollar later to pay off debts. In that case, you need a personal financial plan (PFP). We tell you what this tool is and how successful people use it.

The notion of a personal financial plan

Most often, the problems with finances arise from the inability to plan and control the money; that is, when they appear, a person spends everything without rest and again experiences a lack of funds.

Needless to say, in such a situation, he does not feel financially secure because, most often, he does not have a financial cushion in case he suddenly loses his source of income or if he urgently needs money for medical treatment, for example.

Solving such problems once and for all helps to make a competent personal financial plan.

In fact, it is a document that describes your current situation (expenses, income) and shows your financial goals and the ways you want to achieve them.

Pay attention to the important points.

This document is compiled individually. It is not recommended to take an example of a personal financial plan from the network or from acquaintances and substitute your figures in it because everyone's goals are different, as well as their financial situation.

However, you can watch how the document is drawn up and be inspired by what other people are striving for.


The plan can be long-term (for several years or for life) or short-term (for a month or for a year).

The main thing is to periodically review it and adjust it if the financial situation and goals change.


You should look at the plan before each major purchase to understand how the upcoming expenditure will affect your financial situation and once again answer whether it is necessary.


Finally, it is necessary to make a plan on paper, not in your head; otherwise, it will not be possible to implement it. However, if your plan fails you can always take a loan and how to do it right check it out