How You Can Create A Financial Plan Without An Expert’s Advice

How You Can Create A Financial Plan Without An Expert's Help

Having troubles creating a Financial Plan? No need to spend money on expensive advisors. Read on to find out a few tips on how to create a financial plan…

Financial Experts are people who can guide you into making the best possible use of your wealth. By guiding you how and where to invest, they ensure that you earn the maximum possible interest on your savings.

Some people need them and some don’t. Before you start wondering whether you need one, let me tell you that they come with a fee. Significant fee.

Hiring a financial advisor is very similar to hiring a personal gym trainer. The Expert/trainer will guide you in the right direction.

But remember, that not every fit person has a personal gym trainer. Guidance from a professional can be helpful, but you can get there on your own as well.

Therefore, as always, Bachat is here to make your life simpler and guide you to create a successful Financial Plan

When it comes to finances and their management, the money you spend on a financial expert can be usefully invested (given that you know how to invest).

So, here are some helpful tips to help you ditch the financial expert:

Decide your objectives 

Financial Plan - Discover your objectives

One of the first things any financial advisor will ask you is your financial goals and objectives – what do you want to do with your savings, currently and later, would you like to retire early, would you like to spend on some ‘dream’ luxurious product, etc.

Determining your objectives is very crucial as it helps you to draft your future course of action. For instance, if your future goal is to retire early, your course of action would be different from someone who wants to send his/her children to expensive universities.

In case you’ve never thought about your objectives, now is an ideal opportunity. Driving yourself to create objectives will assist you with a better understanding of what you deeply desire and how your bank balance can help you achieve it.

 You’ll likely have both short term and long term objectives. You must list all of them and rank them according to your personal preferences.

If you don’t have any financial goal or objective to achieve at the end of the day, you won’t be able to work for it. In other words, how can you work for something if you don’t even know what you’re working for?

Find out what you want before creating a financial plan.

Consider your Assets, Liabilities and Cash Flow

Consider your Assets, Liabilities and Cash Flow

To get a 360 degree view of your finances, you’ll have to assess your assets and liabilities.


Assets your valuable products you own. These are things which further generate cash or don’t at least lead to a loss in your existing cash balance.

Assets also include any cash in hand, bank account deposits, etc.


Your liabilities incorporate your obligations, including your home loan, student loan, car loan and credit card debt.

When you subtract your liabilities from your assets, you arrive at your net worth.

Net worth is a typical method that compares what you have right now and how much do you owe right now, without factoring in your income. 

Your income doesn’t factor into this condition by any means—it’s only a measure on what you have right now versus what you owe. 

The reason net worth is a very practical approach to judging your financial situation is that it enables you to make a valid comparison.

For instance, you have assets worth Rs.4,00,000 /- and you owe Rs.1,60,000 /-, then your net worth equals to Rs.2,40,000 /-

It’s alright if you have a negative net worth. The point behind calculating your net worth is to keep a track of its progress all the time.

Your net worth is just an individual gauge on how well you’re doing with your cash. Indeed, higher net worth is better; however, you truly shouldn’t gauge yourself against any other person. Everybody’s conditions are unique and so is their net worth.

Instead of comparing, concentrate on expanding your net worth around 5-7 percent every year as a medicine to your financial health.

Cash Flow

It is essential that you keep track of your cash flows. You must ensure that you are not spending more than what you are earning.

In case you are spending more than what you are earning, you must take measures to curb down your expenditures.

That is, you must start resorting to frugal tips and tricks in order to save money.

You must think twice before you go on a shopping spree and save that money instead.

Come up with an investing plan

Financial Plan - Come up with investment plan

To ensure a healthy financial lifestyle, you must come up with an investing plan – your financial plan.

After all, investing is a must if you want your savings to pay back to you in the long run. 

But, the basic principle before you go investing must be to diversify your portfolio. ALWAYS.

You should not put all your eggs in one basket, no matter how lucrative the basket looks. 

Long-term investments will help you gain significant cash over the coming years. You must ensure that there is enough cash so as to help you win over inflation.

Here are a few investing tips for beginners:


Do complete research before finalizing an organization in which you want to invest. You must look into an organization’s history and future plans. Also, you ought to comprehend the organization’s long-term plans, expansion plans, owners, etc.


Financial Plan - Diversify

Diversify your portfolio. Try to invest in a variety of securities in order to lower your overall risk exposure. This goes well with saying, “Don’t put all your eggs in one basket”.

If you have a portfolio which consists of a wide range of securities, it will work as a shield against huge losses for you.

Stable Returns

Initially, look for stable returns rather than investing aggressively. I know, we all want to multiply our money quickly but patience is the key to smart and fruitful investing.

Creating A Financial Plan Conclusion

Finance Advisors usually have commissions set in certain investment avenues. Therefore, they are likely to guide you into investing in those avenues only irrespective of their pay back values.

Hence, if you are too keen on getting a financial advisor, hire one on a fixed salary basis instead of a commission basis.

But, I would advise against getting a financial advisor and instead suggest handling one’s finances on one’s own.

Also, if you absolutely need one, Bachat is here!

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