How to create your financial plan: A step-by-step guide
Here is a step-by-step guide outlining how we create your financial plan, so you can understand the process and the ways we support our clients
A financial plan allows you to take control of your money so you can be more secure now and progress towards important goals for the future. But if you haven’t worked with a financial planner before, you might be a bit apprehensive because you don’t know what to expect.
Read on to learn the important steps we take to create your financial plan.
1. List your important life goals
The process starts with your ambitions in life. Before we get into any specifics about savings and investments, or how much you put in your pension, we’ll ask you what you want your life to look like.
This might include discussions about your general lifestyle and spending – for example, how much you like to travel, whether you have an active social life, or if you want to start or grow your family.
We’ll talk about your plans for the future too. You might want to move into a larger home or start a business, for example. Finally, we’ll ask about the kind of retirement you want.
Using this information, we can calculate roughly how much wealth you might need to build throughout your life to achieve everything that’s important to you. Then, we will create a financial plan to help you reach this target.
2. Review your current position
The next step is to see what your current financial position looks like. We’ll gather details about your income and monthly expenses, savings, investments, and pensions. We will consider the value of any property you own too, as well as any debts you have.
Advanced cashflow planning tools come in handy here, as we can use them to model how much wealth you could build based on your current saving habits. The results might show that you’re on track to reach all your goals, or we might find you’re not quite saving enough.
Either way, cashflow forecasts give you a clear picture of where you are currently and what your financial position is likely to look like in the future. We can then discuss potential changes to your financial behaviours, if necessary.
3. Check whether you have the right protection in place
Protection is the scaffolding that holds your financial plan in place so you can continue building wealth, no matter what life throws at you.
If you don’t have protection and you can’t work due to illness or injury, you may struggle financially. You might receive sick pay from your employer for a certain period, but, depending on the company policy, your earnings could drop. This makes it harder to cover your general expenses and save for the future, so you might fall short of important financial goals.
However, if you have income protection, you’ll receive a monthly payment until you’re able to return to work. While this might not match your salary, it should be enough to stop you dipping into your savings and stop you falling behind with your financial plan.
Equally, a life insurance policy protects your family if you pass away suddenly. Without your income, it could be difficult for your loved ones to remain financially stable and achieve their long-term goals. A life insurance payout helps bridge this financial gap and could prevent money worries during a very difficult time.
If you don’t already have protection in place, we’ll help you find suitable cover for your family. We can also review any existing cover to check that it still meets your needs.
4. Start building wealth for the future
Now that we understand your goals and current position, and you have the relevant protection to support your financial plan, we can dig into the finer details.
Using the cashflow forecasts and other information from our earlier discussions, we will set savings targets and work out how much you need to pay into your pensions, savings, and investments each month.
We’ll create a clear budget that allows you to enjoy a good quality of life now, while also building wealth for the future. Once you start contributing to your investments, we can help you manage your portfolio to ensure you see sustainable growth over time.
All this means you improve your financial position and, month by month, make progress towards important goals.
5. Review your plan regularly
Creating your plan is only the first step – it’s also important to review it regularly.
Throughout your life, your circumstances will change and priorities will shift. For instance, if you start a family, you might think about saving for your children. You will likely change jobs or move into a different home at some point too.
All these things affect your financial position and the goals you hope to achieve. So, the financial plan you initially created might need tweaking to reflect your new situation. Annual meetings with your financial planner are the perfect opportunity to do this, but you can contact us anytime if you are concerned about something.
Even if you don’t make any changes, we will check that everything is still on track, especially as outside forces such as market downturns could affect your financial plan.
These regular reviews give you peace of mind that you can live the lifestyle you want now, and in the future, without worrying about your money.
Get in touch
If you are yet to connect with an adviser, you can use the contact form on our website to make an initial enquiry and start your financial planning journey.
Alternatively, if you are an existing client, please contact your adviser today to update your financial plan.
Approved by Best Practice IFA Group on 08/01/2026.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Benchmark Financial Planning is not responsible for the accuracy of the information contained within linked sites.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
The Financial Conduct Authority does not regulate cashflow planning.
Note that life insurance and financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.
Important information
The views and opinions contained herein are those of Benchmark Financial Planning. They do not necessarily represent views expressed or reflected in other Benchmark Financial Planning communications, strategies or funds and are subject to change. This document is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable, but Benchmark Financial Planning does not warrant its completeness or accuracy. The data has been sourced by Benchmark Financial Planning and should be independently verified before further publication or use. No responsibility can be accepted for error of fact or opinion. Benchmark Financial Planning is not responsible for the accuracy of the information contained within linked sites. Reliance should not be placed on the views and information in the document when taking individual investment and/or strategic decisions. Past Performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.
Issued by Benchmark Financial Planning Limited. An Appointed Representative of Best Practice IFA Group Limited which is authorised and regulated by the Financial Conduct Authority, the registration number is 223112. Registered office: Broadlands Business Campus, Langhurst Wood Road, Horsham, West Sussex, RH12 4QP. Registered in England and Wales No 07572431.
Topics
