Top 10 Keys To Financial Planning Success: Step by Step Guide

Financial planning can be an overwhelming task to start, even when you are in the middle of it. There are so many different aspects to take into account when creating a financial plan that it can be difficult to decide where to start and what steps need to come first. With so much on the line, from your retirement savings to your own peace of mind, starting your financial plan correctly can make all the difference in the world. Here’s how to create a solid financial plan that will help you achieve your financial goals, whatever they may be.

Financial planning can seem like an overwhelming task, especially when you have to consider the many different elements involved in doing it well. But by taking one step at a time, you’ll find that it’s actually not that difficult to do well at all. Here are the top 10 keys to successful financial planning.

In order to have success in any financial endeavor, you first need to determine your goals, then craft an action plan to achieve those goals. The ability to consistently follow through with your action plan can make the difference between being successful and failing in life’s most important financial endeavors. This step by step guide will help you set clear, concrete financial goals and strategize the best way to reach them. Here are the Top 10 Keys To Financial Planning Success: Step by Step Guide!


The most common thing people tell us about their financial situation is that they can’t save any money. While it’s true that some people have more financial obligations than others, saving money is usually a matter of priorities. You should always prioritize your necessities first and foremost—housing, transportation, food—and work your way down from there.

Pay Off Debt

One of your first financial goals should be to pay off all debt, except for a reasonable amount of home and car debt. If you’re in consumer debt, work toward paying it off as soon as possible. Not only is consumer debt harmful to your credit score, but interest rates are high and most debts are due in five years or less. Paying them off as quickly as possible will give you a boost of confidence once they’re gone.

Invest In Your Education

When it comes to long-term financial planning, knowledge is power. It’s not enough to read books or listen to podcasts; taking action is what will help you get from Point A (where you are now) to Point B (where you want your finances and overall life situation to be). So if there’s something that has always intrigued you in terms of finance—whether it’s saving for retirement, investing, budgeting, or insurance—get educated!

Get Insurance

This might seem obvious, but buying adequate insurance coverage is critical. Even if your business is just getting started on a shoestring budget, you need to have basic liability and property insurance coverage to protect your assets in case of an accident that’s not your fault. You also want to consider purchasing employee-related policies, such as workers’ compensation or health insurance. And don’t forget about life insurance! Your loved ones are counting on you for financial support when they need it most. A good rule of thumb is to make sure your policy covers at least three times your annual salary.

Have An Emergency Fund

Without an emergency fund, any emergency can make you scramble for cash. Whether it’s an unexpected medical bill or a job loss, having an emergency fund can get you through challenging times without taking on more debt. In fact, according to research from GOBankingRates, 60 percent of Americans don’t have enough savings to cover an unexpected expense of $500 or more.

Choose The Best Investments For You

You don’t need to be a financial expert to find a great investment, but you do need to know what your goals are. For example, if your goal is short-term (0–5 years) growth and income, investments like bonds and CD accounts are going to be better than stocks. On the other hand if your goal is long-term growth with limited risk, stocks are going to be more appropriate. Whatever you choose, keep it simple—and as low cost as possible.

Buy A Home

When you own your home, you won’t have to pay rent, which means your wealth is growing every month. But make sure that home isn’t weighing down your finances—before you buy a home (or if you already own one), figure out how much it will cost to maintain, repair and renovate it in a year. That way, you’ll know what kind of budget—and sacrifice—you’re committing to.

Protect Your Home From Natural Disasters

Hurricanes, tornadoes, and earthquakes can happen anywhere. Although these disasters can’t be predicted, it’s important to have a plan in place for when they occur. One of the best ways to protect your home is by installing storm shutters or hurricane panels on your windows. These are designed to withstand high winds, flying debris, and even projectiles during an earthquake. Not only do they protect your home from damage, but they also help prevent injury if you’re inside at the time of an emergency. They also provide privacy from outside viewers—perfect for those who like their privacy!

Reduce Your Risk of Health Problems

The longer we live, and with advances in medical technology, many of us live long enough to experience health complications from age-related illnesses such as cancer and heart disease. Since these are expensive to treat and can leave people unable to afford to do basic things like buying food or pay their bills, it’s essential for retirees to take steps to reduce their risk of getting sick.

Build Up Savings for Retirement

It’s never too early or too late to start saving for your retirement. If you think that you’re young and have plenty of time before retirement, that is only partially true. The ideal time to start saving is now; it only takes a small amount each month over your lifetime to make up an impressive nest egg. Work on increasing your savings with each paycheck, and watch as time flies by without a care in the world when you’re enjoying your golden years.

Final Words

Financial planning is about prioritizing and organizing your financial goals in order to execute them. It’s a personal thing, and everyone’s approach will be different. Use these ten keys as your guide, but remember that it’s not written in stone. The important thing is that you get started on a plan that works for you!

Leave a Comment