Financial Action Plan | Converting Your Financial Goals Into Practical, Achievable Action Steps

How to develop a financial action plan to achieve your financial goals

fiancial action plan

Once you’ve set your financial goals, you need to support these goals with specific steps to accomplish them. This is where a financial action plan comes into play.

Our goals can only be reached through a vehicle of a plan, in which we must fervently believe, and upon which we must vigorously act. There is no other route to success. - Stephen A. Brennan

An action plan, according to, is a sequence of steps that must be taken, or activities that must be performed well, for a strategy to succeed.

So, to achieve your set financial goals, you will need to clearly define the steps you’ll take to bring each goal into fulfilment.

To help you understand how to develop a financial action plan for a goal, lets identify one smart goal and then proceed from there. Ready?

Here is our smart financial goal:

  • Own a Ksh 6.5M 3-roomed bungalow on a quarter acre piece of land in Nyali, Mombasa fully paid in 18 years.

NB: Please take sometime and read these two financial guides. They will bring you to speed with what we will be talking about below.

6 Practical Steps to Re-Organizing Your Finances and Creating a Financial Plan

Achieve what matters most by setting SMART goals

Formulating The Action Steps

What exact steps are you going to take to bring this goal into fulfilment?

We think in generalities, but we live in detail. - Alfred North Whitehead

You have to establish the key factors first, that will guide you in formulating the action steps:

  1. Where exactly in Nyali do you want the house to be located? Nyali is a large area my friend.
  2. Which is your preferred financing? Mortgage or Cash payment?
  3. Who else will be involved in bringing this goal into fulfilment?
  4. What are your option(s) in a worst case scenario?

With these few key factors, we are set to go:

Where exactly in Nyali do you want the house to be located?

  1. Find and call a real estate agent. Find out from the agent if there are 3-roomed bungalows (assuming you want an already built house) or quarter acre pieces of land (assuming you want to build your own house from ground) available in Nyali area.
  2. If they are available, set a date and time with the agent for field visits
  3. List down, before hand, all the info you’ll need to ask the agent about the properties. (details of the info not covered on this guide) During the visit, get all the necessary info, from the agent, about the properties when you meet.

Which is your preferred financing?

Lets assume you are considering buying an already built house using a home loan (mortgage). You don’t want 100% financing since you have some cash saved (20% of the financing) as deposit.

  1. Find and set a date to visit (or call) a number of mortgage companies. Or you can make a preliminary search on the internet for available mortgage products in your local financial market. Find out if there are mortgage products that match your goal: Ksh 6.5m in 18 years.
  2. Immediately after collecting the info, analyze the available mortgage offerings and select the best choice. You may need the expert assistance of an independent real-estate investment expert to pick the best mortgage product. Find one, call them and set a meeting.

Who else will be involved in bringing this goal into fulfilment?

Others may be involved (directly or indirectly) in assisting you in achieving this goal. Who are they and what are their roles? For example:

  1. Spouse/Partner – you may need the input of your spouse or partner to consolidate financial resources.
  2. Real Estate Agent – to help you find the property you need.
  3. Mortgage Provider – to finance your home purchase.
  4. Real Estate Investment Expert – to advise and help you select the mortgage product that is right for you.

Some of the people may need to be paid for their services, so put that into consideration.

What are your options in a worst case scenario?

There is no guarantee that everything will run smoothly to the end. Life is capricious. The goals that you think have a clear path to success sometimes have obstacles that you don’t see at first glance, and sometimes those obstacles can prove insurmountable.

Many a times we don’t consider worst case scenarios of our investment decisions only to be caught unaware when life circumstances change.

In this case, a worst case scenario could be a situation where you are no longer able to make your mortgage payments. So, what options will you have in such a case?

  1. When enquiring about mortgages, ask the mortgage providers about the worst case scenario. You need to now what the worst could happen when you can’t make mortgage payments.
  2. Put an emergency plan in place.

Crystallize your goals. Make a plan for achieving them and set yourself a deadline. Then, with supreme confidence, determination and disregard for obstacles and other people’s criticisms, carry out your plan. - Paul Meyer

That's it! Was it hard? :) I don't think so! Just go through the example again then apply the process with other goals.

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