How to Create a DIY Financial Plan (Free Template) (2026)

If create diy financial plan is on your radar, this short guide cuts through the noise. Here is what is worth knowing, and how to put it to work today.

Key Takeaways

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• A joint study between the Consumer Federation of America and the CFP Board found that 48% of households with a financial plan described them...

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This content is for educational purposes only and does not constitute financial advice, advisory, or brokerage services. We may earn compensation from some links on this page. Learn more.

A joint study between the Consumer Federation of America and the CFP Board found that 48% of households with a financial plan described themselves as “living comfortably.” Those without a plan expressed that sentiment only 22% of the time.

This guide outlines seven simple steps to develop a financial plan, regardless of your income or financial situation.

Here’s an overview of the seven steps we’ll cover:

1. Set your values. 
2. Create a net worth statement. 
3. Analyze your current spending. 
4. Pick short-term financial goals. 
5. Design and automate your cash flow plan. 
6. Monitor your KPIs.
7. Make adjustments. 

We’ve also created a one-page PDF to walk you through each step, which you can download here. 

Click to download our free one-page worksheet.

Big Ideas About Financial Planning

• It’s easier to become a excellent planner and saver than it is to beat the market or make millions of dollars. Beating the market or scoring a windfall of cash is difficult and rare. Yet this is what a lot of people rely on in order to realize their goals. Financial planning, on the other hand, is far easier and completely within your control. 
• Cash flow planning is the most key aspect of financial planning. Most people equate financial planning with managing an investment portfolio. But it’s far more key for most households to focus on cash flow planning (which is simply deciding what to do with your income). 
• Financial planning is about maximizing opportunity costs. That means knowing which goals to prioritize, while understanding that you can’t accomplish all your goals at the same time.

What Is a Financial Plan?

A financial plan is a document that outlines your current financial situation, future goals, and the steps you need to take to achieve those goals.

At its core, a financial plan answers three key questions:

1. What is your current financial situation? This is assessed by creating a net worth statement and analyzing your spending habits.
2. Where do you want to be in the future? This involves setting inspiring yet realistic financial goals. 
3. How will you get there? A financial plan maps out a cash flow strategy to direct income towards priority goals, and tracks progress through key metrics.

The format of a financial plan can vary from a single page to a more detailed spreadsheet. Regardless of the format, the purpose is to provide clarity, direction, and strategies to improve your financial well-being. 

Step #1: Identify Your Financial Values

There’s more to having a financial plan than setting financial goals, such as paying off debt, building an emergency fund or saving for retirement.

A well-thought-out financial plan connects these goals to something deeper , to your “why.” 

This “why” is what I like to call your financial values.

Think of financial values as a set of two or three core ideas that guide your financial decision-making.

What’s key is that these values resonate with you personally. While they can vary widely between different people, I find that they typically fall into one of six categories:

1. Security. Valuing a stable and predictable financial future.
2. Accumulation. The focus is to grow a number, such as your total net worth, over time. 
3. Freedom. Prioritizing the ability to make life choices without financial constraints.
4. Generosity. The desire to give back and help others.
5. Enjoyment. Spending on experiences and items that bring joy.
6. Family. Ensuring the well-being and financial stability of loved ones.

The question I find most helpful here is this:

“When I look back on my life numerous years from now, which financial values will I most regret choosing not to prioritize?”

With that question in mind, take time now to choose the values most key to you and write them down in your financial plan. 

While the general categories above are a good starting point, feel free to put your own spin on this exercise. Your values are your own.

Step #2: Create a Net Worth Statement

A net worth statement, also known as a balance sheet or a personal finance statement, is a summary that shows you the value of what you own (assets) minus what you owe (liabilities).

Measuring progress is easier when a simple metric (such as net worth) tells you how you’re doing. If it’s increasing, excellent! If it’s not, you’ll need to consider changing financial strategies.

To get started, use our net worth template, available via Google Sheets (click the “Make a Copy” button when prompted), to help you calculate this number.

With the spreadsheet open, you’ll want to do the following: 

1. List and value your assets. For most people, this includes bank account balances, retirement accounts, taxable investments, real estate and vehicles.
2. List your liabilities. Include all debts, such as credit card balances, student loans, your mortgage, auto loans, and any other commitments for which you have borrowed funds. 

The spreadsheet will then subtract your total liabilities from your total assets. 

The figure you get from this calculation is your current net worth.

Don’t freak out if your net worth is a negative number! The point is simply to make yourself aware of your current financial reality, and then to create a plan for increasing the number over time. 

Step #3: Analyze Your Current Spending

With your net worth statement in hand, the next step is to analyze your current spending habits, checking for areas that are out of balance. 

The easiest way to do this is by using the framework of the 50/30/20 budget.

The 50/30/20 budget allocates your income into three categories:

• 50% for needs, such as housing, food, transportation, education and healthcare. 
• 30% for wants, such as gym memberships, eating out and travel.
• 20% for savings, including debt repayments, 401(K) contributions, and saving up for an emergency fund.

Your task is to analyze your past three months of spending to see what your percentages were for needs, wants and savings. Then, fill in the “Current” pie chart in the financial planning template with these percentages.

Compare your spending and savings to the recommended allocation.

Pro tip: I recommend using one of the numerous free personal finance budgeting apps to get this data. 

Step #4: Choose Your Financial Goals

At first glance, numerous financial goals sound borin

Final Thoughts

Before you check out, double-check create diy financial plan against current offers and any coupons you can stack. Small habits like this add up to real savings over a year.

Originally published at thewaystowealth.com.