The Financial Planning Process

How to make a personal financial plan.

2026-06-29

Shrewsbury Financial Collaborative

Table of content
  1. The 7 Steps
  2. The Details

The 7 Steps

There are seven steps in the financial planning process used by professional financial planners:

  1. Understanding the Client’s Personal and Financial Circumstances
  2. Identifying and Selecting Goals
  3. Analyzing the Client’s Current Course of Action and Potential Alternative Course(s) of Action
  4. Developing the Financial Planning Recommendation(s)
  5. Presenting the Financial Planning Recommendation(s)
  6. Implementing the Financial Planning Recommendation(s)
  7. Monitoring Progress and Updating

A full explanation of these step can be found on the CFP Board website.

The Details

Collecting Information about your personal and financial circumstances is the essential starting point for making a financial plan.