Create your own financial plan with this financial planning template

Financial Planning, Goal-based Investing

Create your own personal financial plan with this free excel-based financial planning template.

Ever since I made my first retirement calculator, I have had several requests to make an integrated financial plan creation tool.

The only reason I took this long to make it is sheer boredom. I thought, since I had already made most of the calculators found in a financial plan, it would be boring from a mathematical point of view to put it all together. How wrong I was!

I have always wanted to make a financial planning template with a one-page input and one-page output. A template in which all future cash flow entries are displayed on a single cash flow chart.

I have managed to pull if off, except for the one-page input part, as I have realised that would make it too cluttered and clumsy. Making the integrated cash flow chart turned out to be pretty exciting and at times exhausting.

Do excuse the crummy sounding title. There are certain things a blogger must do to get a search engines attention!

That quite enough blah-blah. Without further ado, here are the features of the financial planning template:

  • Create a financial plan for retirement, 5 non-recurring financial goals (child’s education, marriage etc.) and 2 recurring financial goals (vacation, annual medical tests etc.)
  • Calculate the life insurance needed for financial independence of your family after your time. Important goals like children’s education and marriage are also accounted.
  • The life insurance calculator has a clear set of instructions for the nominee as to how the insurance sum should be invested. It would be useful if a set of such instructions are found inwill of the insured.
  • Retirement calculator with the possibility to include two passive income streams in employment (rent, dividend/business income) and in retirement (pension, rent)
  • Recurring and non-recurring financial goals calculator. You can assign a priority to each goal and determine the feasibility of achieving each goal relative to retirement (number 1 priority) and to each other.
  •  Integrated cash flow chart which accounts for income, expenses, EMI, investment and pension schedule
  • Cash flow summary to analyse the feasibility of retirement – the number one financial goal and other goals relative to retirement and to each other.
  • One-page report  this contains all the results serves as quick reckoner for initiating an action plan

Important

  1. A financial plan is a just a piece of paper if you don’t act on it
  2. You will need to review the financial year once a year.

Sample financial plan

Integrated-Financial-Planner-1

Integrated-Financial-Planner-2

Requests

  1. Feedback, suggestions for improvement and requests for specific modifications are welcome.
  2. If you are a member of the financial planning community, I will be delighted if you could help me tweak this tool and make it better.
  3. Please do share this post with your friends and colleagues.

Download the financial planning template

Latest version: Updated Jan. 15th 2016. Integrated Financial Planning Template Corrected an error in the insurance sheet as pointed out by Guru Rudagi.

Hey, my new book with Subra(money.com), You can be rich with goal-based investing is now available at Flipkart for Rs. 359/- only! Pre-order now!

Change log

Updated Dec. 3rd 2014. Analysis sheets added. Update: Integrated Financial Planning Template

Updated Aug. 23rd 2014. Thanks to Mr. Ashok Kumar Anand for pointing an error in the way passive income was handled.

Updated Dec. 6th 2014. Thanks to Ms. Vandhana Rajendran and Mr. Ashok Kumar Anand for pointing out bugs.

Update April 4th 2014. Thanks to Ms. Aparna for pointing out a bug in the retirement planning sheet.

Update April 24th 2014. Thanks to Ms. Aparna again for pointing out a bug in the retirement planning sheet!

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My new book with PV Subramanyam, published by CNBC TV 18

The book comes with 9 online calculator modules to create your own financial plan.

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  • Highly Recommended For anyone who wishes to take control of his/her finance this book is a must read. Very simply put, even an amateur in finance will be able to understand and implement. The author genuinely attempts to inculcate the habit of investing among the people who have the ability to invest but refrain from doing it, either due to lack of time , interest or understanding!. The message from the book is ” Investment done without setting a goal/ objective is like leaving for a trip without knowing the destination, not everytime the end result will be promising. Hence, it’s important to invest in a planned & disciplined manner.” A read is highly recommended 🖒
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Read all reviews here: Amazon Reviews

Want to conduct a sales-free "basics of money management" session in your office?
I conduct free seminars to employees or societies. Only the very basics and getting-started steps are discussed (no scary math):For example: How to define financial goals, how to save tax with a clear goal in mind; How to use a credit card for maximum benefit; When to buy a house; How to start investing; how to invest for and after retirement etc. depending on the audience. If you are interested, you can contact me: freefincal [at] Gmail [dot] com. You need to only cover my travel fare for the session.

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Do check out my books

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Create a "from start to finish" financial plan with this free robo advisory software template

Free Apps for your Android Phone

All calculators from our book, “You can be Rich Too” are now available on Google Play!
Install Financial Freedom App! (Google Play Store)
Install Freefincal Retirement Planner App! (Google Play Store)
Find out if you have enough to say "FU" to your employer (Google Play Store)

About Freefincal

Freefincal has open-source, comprehensive Excel spreadsheets, tools, analysis and unbiased, conflict of interest-free commentary on different aspects of personal finance and investing. If you find the content useful, please consider supporting us by (1) sharing our articles and (2) disabling ad-blockers for our site if you are using one. We do not accept sponsored posts, links or guest posts request from content writers and agencies.

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Your thoughts are vital to the health of this blog and are the driving force behind the analysis and calculators that you see here. We welcome criticism and differing opinions. I will do my very best to respond to all comments asap. Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and I reserve the right to delete the entire comment or remove the links before approving them.

Published by freefincal

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173 thoughts on “Create your own financial plan with this financial planning template”

  3. Ahhh pattu… finally you have pulled it off. I am yet to try it. But the very fact that you have put this together is so heart warming especially when you belong to a non-finance core and you do not expect to monetize your work. I can imagine the effort that would have gone into this and your other calcs. You are far ahead of our tribe. Hats off to you…

    Reply

  4. Ahhh pattu… finally you have pulled it off. I am yet to try it. But the very fact that you have put this together is so heart warming especially when you belong to a non-finance core and you do not expect to monetize your work. I can imagine the effort that would have gone into this and your other calcs. You are far ahead of our tribe. Hats off to you…

    Reply

  9. Thanks Pattu for putting the thigns together. Just love the work. Shared this work sheet with all friends and relatives. Going to use this work sheet.

    Reply

  10. Thanks Pattu for putting the thigns together. Just love the work. Shared this work sheet with all friends and relatives. Going to use this work sheet.

    Reply

  11. pattu, i just wanted to flag a few points: 1.u r not having any provision for including gratuity/ leave encashment one would get at the time of retirement ., there is provision for any additional lump sum income such as shares from parents that could come down the line. 3the plan only provides for a family with one earning member.

    Reply

  12. pattu, i just wanted to flag a few points: 1.u r not having any provision for including gratuity/ leave encashment one would get at the time of retirement ., there is provision for any additional lump sum income such as shares from parents that could come down the line. 3the plan only provides for a family with one earning member.

    Reply

  13. Dear Sunder, thanks for the suggestions. Yes, the proposed changes can be made but that ‘ll only create more complicated structure. Personally you know me very well that I’m firm believer of KISS – keep it simply simple. hence I’m more than happy what I’m getting from current calculator from dear Pattu. 🙂

    Thanks

    Ashal

    Reply

  14. Dear Sunder, thanks for the suggestions. Yes, the proposed changes can be made but that ‘ll only create more complicated structure. Personally you know me very well that I’m firm believer of KISS – keep it simply simple. hence I’m more than happy what I’m getting from current calculator from dear Pattu. 🙂

    Thanks

    Ashal

    Reply

  17. Thank Sunder. This kind of template is typically many years away from retirement. Therefore is best for someone like that to ignore lump sum benefits. Similarly if both husband and wife intend to work until retirement and hope to remain married they should simply integrate expenses, income and liabilities. If they don’t intend to either then they should plan separately.

    I will include lump sum before retirement option. For the moment, you and others interested can use this:
    http://freefincal.com/retirement-calculators-advanced/retirement-planner-for-the-middle-aged-employee/

    Reply

  18. Thank Sunder. This kind of template is typically many years away from retirement. Therefore is best for someone like that to ignore lump sum benefits. Similarly if both husband and wife intend to work until retirement and hope to remain married they should simply integrate expenses, income and liabilities. If they don’t intend to either then they should plan separately.

    I will include lump sum before retirement option. For the moment, you and others interested can use this:
    http://freefincal.com/retirement-calculators-advanced/retirement-planner-for-the-middle-aged-employee/

    Reply

  42. thank you for such versatile comprehensive calculator. sometime before , i calculated the insurance requirement as on today with the same premises as yours and i tried with this calculator , and found the same result.

    Reply

  43. thank you for such versatile comprehensive calculator. sometime before , i calculated the insurance requirement as on today with the same premises as yours and i tried with this calculator , and found the same result.

    Reply

  44. really it is a very good one !

    I have one question regarding the asset allocation.

    whether asset allocation is for individual goals or it is for the entire portfolio of a person !

    if I keep it for individual goals it becomes little complex.

    if I keep it for entire portfolio I think I am becoming too conservative taking less risk for the long term goals.

    assumption: equity inv are considered as an option in the portfolio only the tenure of the goal is 7 or more than seven years.

    if you have any post for asset allocation pls forward me

    Reply

    1. Dear Vignesh, Each goal should have its own asset allocation. For example, I hope to retire after 25 years, and my son is expected to graduate from school in 14 years. How can these two goals have the same asset allocation?
      The first step is finding out how much return you need. The you take into account a reasonable return from equity (10% for 15 years) and 12% for durations higher than that and plan your asset allocation accordingly.

      See if this will of use.
      http://freefincal.com/a-step-by-step-guide-to-long-term-goal-based-investing-part-i/

      Reply

  45. really it is a very good one !

    I have one question regarding the asset allocation.

    whether asset allocation is for individual goals or it is for the entire portfolio of a person !

    if I keep it for individual goals it becomes little complex.

    if I keep it for entire portfolio I think I am becoming too conservative taking less risk for the long term goals.

    assumption: equity inv are considered as an option in the portfolio only the tenure of the goal is 7 or more than seven years.

    if you have any post for asset allocation pls forward me

    Reply

    1. Dear Vignesh, Each goal should have its own asset allocation. For example, I hope to retire after 25 years, and my son is expected to graduate from school in 14 years. How can these two goals have the same asset allocation?
      The first step is finding out how much return you need. The you take into account a reasonable return from equity (10% for 15 years) and 12% for durations higher than that and plan your asset allocation accordingly.

      See if this will of use.
      http://freefincal.com/a-step-by-step-guide-to-long-term-goal-based-investing-part-i/

      Reply

  52. really it is a very good one !

    I have one question regarding the asset allocation.

    whether asset allocation is for individual goals or it is for the entire portfolio of a person !

    Reply

  53. really it is a very good one !

    I have one question regarding the asset allocation.

    whether asset allocation is for individual goals or it is for the entire portfolio of a person !

    Reply