Shomer Shekalim

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components of a financial plan

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legal warning: The information here should not be understood legally as financial advice. If you believe anything on this site is in error, please contact me. I am always open to corrections, new ideas, and new opinions...

I am not sure at what point after I began trying to take control of my finances that I realized I had no idea how to know if or when I would actually attain the control I was seeking.  When would all the obsessive research and spreadsheets be enough that I could confidently say that I was in control of my finances?

While there is no magic formula for the perfect financial plan, I knew that whatever plan I’d follow, I would have to take into account four phases of my life: the present, the unknown, the past and the future.  Below is the list I compiled of the major components of my financial plan:

(1) The Present:  Make sure you spend less than you earn

  • (a) Live on a budget – this means composing a monthly spending plan, including your fixed expenses, variable expenses and tzedakah
  • (b) Occasionally review and attempt to reduce expenses
  • (c) Increase income – this includes watching your investments (for example, your keren hishtalmut) to make sure you are getting the most out of your money.

(2) The Unknown:  Plan for occasions when things do not go according to plan

(3) The Past:  Deal with your financial past

(4) The Future:  Plan and build towards your ideal future

What other items do you think are important to a financial plan?

PS – As you can see the plethora of links above, I have written on all of the subjects above except one – planning for an estate.  If anyone has had any experience and would be willing to speak to me about it or write and article, please contact me at

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