In order to create a personal financial plan, we recommend you set short-term, medium-term and long-term financial goals.
Short-term goals can be accomplished in five years or less - for example, saving for an overseas holiday. Medium-term goals can be achieved over five to 10 years - for example, buying a car. Long-term goals take longer than 10 years to achieve - for example, paying off a home loan.
Do not make the mistake of putting all financial goals into the category of investments; plan for non-investment-related goals, such as becoming debt-free.
The next step is to ascertain where your money is going. One way of doing this is to set up a budget, which will enable you to gain a clear picture of how much money you earn, how you spend it, and how much is left over, if any.