How Do I Start Creating My Financial Plan?

Begin by thinking about what you want: your dreams. You may have thought financial planning begins with budgets, saving receipts, and spreadsheets. No, not just yet. It begins with you writing down what you want to do with your money.

Money is one of the many tools you will use to accomplish the goals and dreams you have for yourself. What good is a tool if it is just sitting around not being used to build or create anything?  Even the richest among us don’t sit around on their money or stuff it in a mattress. They use to it to build more wealth, accomplish goals, or leave a lasting legacy.

What will be your legacy? What are your goals? Start by imagining yourself 45 years from now, you’ll be about ready for retirement. List all of the things you have accomplished and the goals you have achieved. Don’t limit yourself to only financial goals, like being debt-free or earning a big yearly salary. Think of other objectives like travel, family, and personal experiences.

Now, begin to think about yourself 15 years from now, you’ll be in your mid 30’s.

Now, begin to think about yourself 5 years from now, you’ll be in your mid 20’s.

Now, begin to think about yourself a year from now.

Tool: Goal Setting Worksheet

Use our Goal Setting Worksheet to help you discover your goals and create the financial future you desire.

This activity gives you a better idea of why you want money in the first place, so you can have a reason to become better informed about the money you have and the decisions you make with it.

Your dreams may seem years away, but time passes quickly. Remember, only 4 years ago you were a young naïve college freshman, and 4 years before that you were a high school freshman. Therefore, you have to start now to begin working towards your dreams before time catches up with you.

This is an excerpt from Managing Your Money After College Guide which is included in our Real World 101 Care Packages. Visit our Care Package page to find out how to get one for yourself or for a lucky college grad!