Personal Financial Plan Example

Personal Financial Planning Process

personal financial plan salary example
Figure 1 – Salary plan

After the income is planned, we can proceed to the planning of expenses. We will set a target value of 250$ per week for Consumer goods, 250$ per week for Rent, and 300$ per month for Entertainment (Figure 2).

personal financial plan expenses example
Figure 2 – Expenses plan

Personal Financial Planning Analysis

personal financial plan analysis - waterfall chart
Figure 3 – Plan Waterfall chart
personal financial plan analysis - planning table
Figure 4 – Plan Table
personal financial plan analysis - linear chart
Figure 5 – Plan Linear chart
persoanl finance plan/actual analysis - waterfall chart
Figure 6 – Plan/Actual Waterfall chart
persoanl finance plan/actual analysis - 
plan/actual table
Figure 7 – Plan/Actual Table
persoanl finance plan/actual analysis - plan/actual linear chart
Figure 8 – Plan/Actual Linear chart

Following a personal financial plan is as important as writing it. Regular analysis of variances between planned and actual values will help you to know the current financial position and make the right decisions.  Analysis of the first half of the year (Figure 6) shows that the amount of salary is greater and covers additional expenses that made in other categories. The Linear chart (Figure 8) also shows that we are doing a little bit better than planned.

Advanced Financial Planning

Interest and Dividends Planning

Consider that we want regularly transfer earnings to our savings account. As an example, let’s plan a monthly, 1,500$ deposit. By the end of the year, we are expecting to have a balance of 18,000$. Our bank also will pay us interest, thus we include this income in the personal plan.

personal finance - Interest planning
Figure 9 – Interest planning

The amount of free cash is reduced by the value of deposits to the savings account, and at the same time, we have an interest income. Since we started financial planning of capital, we have to distinguish Earnings from Investment activity. Figure 9 shows 22,689$ Earnings, 18,000$ Investment in the savings account, and 4,689$ Free cash.


personal financial planning dividends example
Figure 10 – Dividends planning

Let’s considers an example when we get dividends and reinvest them back to stocks. We have a personal plan for a year to receive a 2,000$ dividend income. We are also planning to purchase stocks by the same value and at the same time. As Figure 10 shows, we do not affect the amount of free cash in this case.

Capital Expenditures Planning

Figure 11 – Planning purchase
Figure 12 – Withdrawing savings
Figure 13 – Postponing purchase

As an example, imagine that we are planning to buy a car at the price of 22,000$ in October. Figure 11 shows negative free cash, so we have to find additional funds in our plan. We can withdraw money from a savings account. But, as shown in Figure 12, there is still not enough cash in October. We see that balance becomes positive by the end of the year. It means that there will be no shortage of funds if we will purchase a car in December (Figure 13).

Personal Financial Planning Tips