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  4. Pillars of Financial Planning
Pillars of Financial Planning by Swarna Kalyaan
  • 2021-08-08
  • Swarna Kalyaan
  • 665
  •     3
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Pillars of Financial Planning

All structures need a Pillar of support. Our financial planning also needs some pillars to make our plan a strong one. Many a times, we miss the basics and try to construct a structure on a week foundation.


I would like to share with you all four pillars, that you need to know that makes your plan a strong one.


1. What you want to achieve?

Based on Simon Sinek’ book on start with Why, we all need to know why we need to plan. Financial goals are generally, to buy the first house, save for the child’s education, buy that fancy car, Travel around the world, and for some it could have passive income during retirement. Irrespective of what our goals are we need to make sure that our goal is

Specific (House/ education/ etc.), Measurable (Exact amount we need for the goal, $$$), Attainable (resources to achieve it), Realistic (with Skills, Knowledge, Disciple and

commitment) and Timebound ( when you need to achieve this goal). Have SMART GOALS.


2. Where you are currently?

Knowing our Net worth is essential. Technically, Net worth is Assets minus Liabilities. This is essential to know how far the goal is to achieve.


3. How much you need to Save?

The common question I get asked is, how much one should save. Savings is a personal choice. But how we must save is a standard rule. We should always save before we spend. Meaning, you need to keep aside your savings before you split the balance of your income to other expenses. As Financial Advisor, I normally would say we need to put aside a minimum of 20% for savings.


4. Budgeting

Generally, there is a 4-3-2-1 rule for Budgeting. 40% of the income is spend on essential expenses, 30% is for any loan payment including Mortgage, 20% is savings and 10% is for insurance to cover for the unknowns. If you are currently not in this ratio, you will need to review your cashflow and see what you can adjust to match this rule.


When we have these pillars in place, any financial plan will succeed.


Quoting Benjamin Franklin “When you fail to Plan, you Plan to Fail”.  So, friends, spend some time understanding your current financial state, and where you want to be in the future and plan it out.



The costliest commodity in this world is Time. Don’t let time slip by as value of Money keeps going downhill with time.

Author Photo Swarna Kalyaan   ( Singapore )


Independent Financial Advisor, Leadership and Communication Trainer
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