5 Easy Steps to Create a Long-Term Financial Plan You Can Stick To
Let’s be real: planning for the long-term sounds responsible, but it also kind of sounds like something your dad tried to talk to you about while barbecuing. But here’s the deal: having a long-term financial plan is one of the most empowering things you can do for yourself. I’m talking about actual peace of mind, not just wishful Pinterest board budgeting.
Whether you're trying to get out of debt, save for a house, travel the world, or just stop stressing about money every dang month, having a structured financial plan gives you a roadmap. And no, you don’t need a finance degree to pull it off. It’s much easier than you think.
Why Long-Term Financial Planning Matters (Even If You’re Just Trying to Survive Right Now)
Here’s the truth that nobody tells you: life gets a lot harder when you’re always reacting instead of planning. If you’ve ever found yourself stressed out of your mind over rent, panicking over surprise expenses, or wondering where all your money went (… again), it’s not because you’re bad with money. It’s because you didn’t have a plan.
A long-term financial plan helps you:
Get off the paycheck-to-paycheck hamster wheel
Make better, faster decisions when life throws you curveballs
Actually reach those big, life-changing goals instead of just dreaming about them
Reduce anxiety around money because you know exactly where you’re headed
Wherever you are in your financial freedom journey, planning long-term doesn’t mean you need a 5-figure savings account. It’s actually how you get there.
Here are the 5 steps I used to build my financial plan from scratch:
1. Get Clear on Your Financial Goals (Like, Really Clear)
This is the most important step of all. Let’s start by ditching the vague goals. “I want to be rich” is not a plan, it’s just wishful thinking. Real financial planning to get rich starts with specific, measurable goals.
Think:
“I want to pay off my $5,000 credit card in 18 months.”
“I want to have $25,000 saved for a down payment by 2027.”
“I want to retire at 55 with $600,000 in investments.”
Write them down. Put timelines on them.
The, you’ll want to break them into chunks, especially if you have big goals that seem unatainable. Broken down into smaller goals will feel a lot more doable.
That is how you are building your why, and that why is what’s going to keep you going when you want to throw your budget into the sea (and you will).
2. Know Your Numbers
Yes, that means facing the scary stuff… and opening your mail that’s been sitting there for EVER. You cannot fix what you’re not willing to look at.
Pull up your bank accounts, credit card statements, investment accounts, everything. Make a list including your income (stable, side hustles, freelance gigs), your expenses (fixed and variable), your debts (student loans, credit cards, car loan) and your savings and investments.
You’ll want to create a net worth snapshot, aka assets minus liabilities. This gives you a baseline, so you know exactly where you stand. You might be closer to your goals than you think!
Pro tip: Use a Notion template or budgeting app to keep this updated monthly. The clearer the numbers, the better the plan.
3. Build a Flexible Budget That Supports Your Big Goals
If the word “budget” makes your skin crawl, think of it instead as a way to get want you want. You’re not punishing yourself, you’re prioritizing the stuff that matters most.
You can use a zero-based budget or the 50/30/20 rule, whatever makes sense for your life. Just make sure you're allocating:
Enough for living essentials (rent, food, bills)
A consistent percentage toward debt repayment
Contributions toward savings, investing, or both
A realistic amount for fun so you don’t self-sabotage
The trick? Consistency beats intensity. You don’t need a perfect budget, you need a budget that works for your own personal financial situation, something you’ll actually stick to.
4. Create an Emergency Fund and Build Long-Term Safety Nets
If your “plan” gets derailed by one flat tire or surprise dental bill, it’s not a plan, it’s a gamble. We can never be sure that life will go perfectly according to plan, so we have to prepare for those curveballs.
Step four is all about building financial resilience. That means you won’t crumble and give up when you hit a bump in the road. This can look like an emergency fund or sinking funds to make sure you can cover your expenses, whether they come as a surprise or are recurring.
5. Set It and Forget It: Automate & Reassess Regularly
Here’s the final boss move: make your plan work even when you’re busy, tired, or binge-watching true crime documentaries. But how is that possible without being consistantly hands on? The answer is: automation. I would argue that it could very be the 8th wonder of the world. Automate what you can and it will go a long way.
Here are a few examples of things you can automate:
Auto-transfer savings every payday
Scheduled debt payments
Automatic investment contributions (hello, TFSA, FHSA or RRSP)
And then check in with your plan as often as you need depending on your situation: monthly, quarterly or even bi-annually. Life changes, goals shift, and what worked in January might not work in October. Revisit, reassess, realign.
All in all, long-term financial planning doesn’t have to be intimidating or boring. It’s not about cutting all the fun out of life. it’s more about giving yourself more freedom and fewer headaches. With a clear vision, a manageable system, and a little bit of automation magic, your future self will actually thank you for reaching your goals.
