How to create a 5-year plan for personal finances

When you were a kid and you pictured the blissful existence you would have as a grownup, we bet financial planning did not feature in that dreamscape. Most likely you were too focused on being able to watch all the TV you want, playing a bunch of video games and eating candy whenever you felt like it. Oh, to be young and blissfully ignorant, the sheer joy of it hey. 

Now that you are, in fact, a grownup, we’re guessing money matters are of bigger concern. Or, at least, they should be if you want to pave the way for a stress-free future in which you can reach your personal goals while also taking care of all the people (possibly some tiny humans of your own making) who depend on you.

The best way to do so is to have a 5-year plan in place for your finances at any given time. But where to start? To get the ball rolling, here are 5 things you should consider when you plot out your financial goals over the course of the next half-decade:


  1. Are you being efficient in terms of tax?

We all know that our tax contributions are necessary to keep the country running, but it’s also important to understand deductibles and where you can get a break.

2. What should happen if you are unable to work?

If you should become ill or incapacitated in some way that prevents you from working, you need to have a safety net in place to keep things on an even keel.

3. Are you setting yourself up for a comfortable old age?

Retirement may not exactly be around the corner, but it’s important to start saving for it early enough so you can benefit from the magic of compound interest.

4. Are you saving efficiently?

If your money is lying around in a plain old savings account earning tiny amounts of interest, you need to relook your savings strategy ASAP. There are much better things it could be doing (e.g. bringing down your monthly bond repayment rate).

5. What about investments?

Do you feel ready to test the waters in terms of local or offshore investment?


There you have it – a few very important things you need to bear in mind when you draw up a 5-year plan for your personal finances. Are you still feeling a wee bit overwhelmed? Feel free to reach out to a member of the Experity team to find out more about our financial services; we’re here to help you make sense of all the complicated accounting stuff so you can get on with the business of living.