Financial Planning DIY

Financial Planning DIY ( Do It Yourself) is a road to your own Financial Freedom and Peaceful Life


To start the Financial Planning Process, we should identity 3 main factor :




i ) To define the Financial Objective, example Retirement, Education , House ownership and other financial objective in our life. Prioritize the objectives according to our needs.




ii) To know the Time Horizon for each financial objective. It may then be classified as short time ( 1 to 3 years), mid term ( 3 to 10 years) and long term ( > 10 years)




iii) As financial planning owner and investor, we should know ourselves better than others. We should know ourselves own Risk Profile, whether we are aggressive, moderate or conservation through some assessment. You may find the related assessment in major financial services web site or financial books.




Without the clear Financial Objective, it looks like the future without clear goal and life road without lamp. We will do not know where we are heading for, what is the life purpose, why we need to accumulate wealth for .




The time horizon for each objective is the clear roadmap to the objective.




To know the risk profile we are in is important for us to choose for the asset class and investment tools that suitable to us to achieve the financial objective within the time horizon.




To start doing it this, take out a piece of paper and pen. Then to have a un-disturbing environment , sincere to yourself, write down the important & meaning financial objective that come through. The objective should be SMART, S-specific, M-measurable, A- attainable, R - realistic  , T - Timely.


All these 3 steps assessment should be documented for future reference and review. Financial Planning is in the life cycle where the process is repeated, initiate the plan -> implement plan  --> monitor the plan --> evaluate the plan --> continuous assessment and monitor --> act on the action --> the process repeated.