In a financial plan there are many elements – to start with, one needs enough money to live off – so one always has to start with a budget.
Many people think that they cannot have a financial plan because the money they have does not make ends meet. But it is always important to plan what you will do with your money and to have a budget, even if you do not have lots of money.
I have always been very disciplined with my money, but I didn’t always save. I did have debt, as I was always in the fortunate position to earn a guaranteed salary.
I would recommend to everybody to start their own financial plan by looking at debt first, because the rate that banks lend you money is typically far higher than any rate you could earn. My own plan was to not have any debt, and I am fortunate enough to be debt-free.
Then there are investments.