Create annual financial plan Create financial plan guide Create financial plan advance finances plan annual planning financial planning simple explained

Create an annual financial plan in 4 steps

The quote "who fails to plan, plans to fail" is probably particularly true in financial matters. Because without proper planning, people, according to Professor Kahnemann**, statistically fail again and again in long-term projects.

A Creating financial planning is crucialin order to be able to stick to a strategy in turbulent times, and to be successful in the long term. As is well known, the difficult times for investors are often those that provide the basis for high profits in the long term.

In this post you will learn how to create a Create annual financial planning and why/where it is important in the first place. If you want to start financial planning with a template, you will find it thanks to this 4-step guide. You can also find out how Zak from Bank Cler can help you with your financial planning.

Table of contents

Findings

  • Annual financial planning helps you see where you currently stand financially, where your goals are taking you, and what is needed to get there in the current year.
  • Your annual planning will not change drastically from year to year. An annual update after an initial creation is therefore easy.
  • Key elements of your annual financial planning are an investment strategy and retirement planning.
  • Positive side effect of financial planning: You know your personal Net Worth (there is a calculator for this in the article).
  • Apps, like Zak from Bank Cler offer exciting features that can help with planning.

What is annual financial planning?

A Annual financial planning covers all your financial concerns over the coming year, with regard to your Longer-term financial goals.

Anyone who wants to prepare an annual financial plan starts with a Balance sheet of the status quoThis is a list of all personal assets and debts at the current time. Mention should be made, for example, of all Income flows, the Your account balance or how much is in your Pillar 3a and pension fund (the latter is where the bulk of the assets of many Swiss people are held).

If, for example, you have a loan or a mortgage on your own home, you can Debts has, must set these against the income on the balance sheet. Also monthly expenses should be listed (copy paste from your household budget).

Once your personal balance sheet has been drawn up, it's time for your investment strategy and pension planning. To do this, you should know what you want to achieve financially in the long term or when you would like to retire. With the help of this list and strategy, you will know at any time how much you should save and invest for your goals. Quite automatically, you will know your wealth situation in a new depth and thus know, for example, your personal net worth or your available equity capital for a possible house purchase. 

At the beginning of your financial planning, you should draw up a personal balance sheet and then update it annually.

Financial planning template

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1. how to create your personal balance sheet

  • Create a List with all your assets including your pension assets, your 3a accounts, all bank accounts, tangible assets (such as gold coins), your nest egg-Account etc.
  • Create a second list with all your debts and obligationssuch as a consumer loan, car lease or mortgage. You should also take into account any debts you may have to your parents for your studies.
  • The Sum of the two respective lists is now subtracted from each otherto get your personal balance sheet total. You can use the Net Worth Calculator:
.
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2. set financial goals

Once your personal balance sheet has been drawn up, you know where you currently stand financially. We call this financial orientation. An orientation is followed by a direction, i.e. your financial goal.

Why forgo consumption today and save your money? A clear objective will help you, Stick to your strategy with motivation to be able to. For example, do you want to buy a home for your family? How much will it cost? Get smart and write down your goal in detail. In order to be able to draw up a financial plan, this step is absolutely necessary.

You want to retire early? How early and what does it take?

You want to make a special holiday or donation possible? No matter what is important to you, The clarity and precision of your formulation is crucial.. As mentioned above: Those who do not plan have already lost.

3. implementation of your financial planning

Congratulations! You have your personal Balance sheet drawn upYou now know your Net Worth and have Set motivating financial targets. What now? We implement!

A good plan is nice, but it's not worth much without implementation. To get your Putting annual financial planning into action and achieve your financial goals makes a 6 accounts strategy Sense. This gives you structure in the implementation and helps you to distribute your income in the right areas using different savings pots. This way, consumer spending will not get out of hand unnecessarily, and your savings and investment pots will be completely automatic filled. 

How such an implementation can look concretely with the savings pots of Zak, we have in this article about the Account model already listed.

4. control of your financial planning

Perhaps in the first year before you create your first annual financial plan, you have already Investments made. Now is a good time to check them and make adjustments if necessary. The same applies, of course, if you want to update your financial planning next year. The same applies, of course, if you want to update your financial planning next year. A Rebalancing of the portfolio or an adjustment of the investment strategy makes sense if your life circumstances or goals have changed.

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Bonus: Taxes as an integral part of your financial planning

A Create financial planning and the Forget taxes? This should not happen to you. Taxes should be a part of your financial planning. integral part and be planned for from the outset.

You pay the Taxes at the end of the year? Then put it aside in time to avoid getting into trouble when it is due. Here can be a Tax pot at Zak be very helpful. Alternatively, you have the possibility to create a Standing order to the tax administration and thus to set up your Taxes in advance to be paid. Persons liable to withholding tax will have the tax deducted directly from their salary on a monthly basis.

Tax savings and opportunities for optimisation abound. The Tax advantages of pillar 3a lead, for example, to the fact that one has to deal with the Pillar 3a Millionaire can be made. Within pillar 3a, you have attractive options for investing your money. Zak offers, in addition to providers such as frankly or ViacZak also offers 3a accounts with securities. You can find out more about Zak's pension services at this place more.

Conclusion

Sound the Financial planning topic boring at first for you? Share your experiences in the comments and tell us if the article changed your mind. Hopefully, this article has explained the topic of financial planning to you in a simple way. 

In this post, you have learned how to make your draw up a personal financial plan, your Calculate Net Worth and financial goals strategically. Is there an area of this that you would like to explore in more detail? Feel free to leave your feedback!

Sources:

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Transparency Note: This post was created in collaboration with Zak from Bank Cler. The content and presentation are nevertheless freely and independently created by Schwiizerfranke and Isabel from Food For Soul.

The information on Zak is intended exclusively for persons domiciled in Switzerland. A Zak account can only be opened with domicile in Switzerland.
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