Dear Readers: Did you know that 78% of people with a financial plan pay their bills on time and save each month versus only 38% of people who don't have a plan? That's a pretty powerful statistic, if you ask me. Or would it surprise you to learn that 68% of planners have an emergency fund, while only 26% of nonplanners are financially prepared to cover an unexpected cost? 

When I hear stats like these, which were recently reported in a Schwab survey, it just reinforces my belief that everyone -- no matter their financial situation -- can benefit from a financial plan. So, why aren't more people planners? Usually it's because they either don't think they have enough money or think a financial plan costs too much. But as I've said many times, neither is the case. 

In fact, you can map out your own financial plan. That way, it won't cost you a penny, and you can also stand to reap the long-term benefits. Here's how to get started mapping out your financial future with a do-it-yourself plan.

10 Steps to a DIY Financial Plan

1. Write Down Your Goals -- One of the first things a financial planner would ask you is what you want your money to accomplish. So, that's the first thing you should ask yourself. What are your short-term needs? What do you want to accomplish in the next five to 10 years? What are you saving for long-term? It's easy to talk about goals in general, but get really specific and write them down. Which goals are most important to you? Identifying and prioritizing your goals will act as a motivator as you dig into your financial details.

2. Create a Net Worth Statement -- Achieving your goals requires understanding where you stand today. So, start with what you have. First, make a list of all your assets -- things like bank and investment accounts, real estate and valuable personal property. Now make a list of all your debts: mortgage, credit cards, student loans -- everything. Subtract your liabilities from your assets and you have your net worth. If you're in the plus, great. If you're in the minus, that's not at all uncommon for those just starting out, but it does show that you have some work to do. Whatever it is, you can use this number as a benchmark to measure your progress against.

3. Review Your Cash Flow -- Cash flow simply means money in (income) and money out (expenses). How much money do you earn each month? Be sure to include all sources of income. Now look at what you spend each month, including any expenses that may come up only once or twice a year. Do you consistently overspend? How much are you saving? Do you often have extra cash you could direct toward your goals?

4. Zero In On Your Budget -- Your cash flow analysis will let you know whatyou're spending. Zeroing in on your budget will let you know how you're spending. Write down your essential expenses, such as mortgage, insurance, food, transportation, utilities and loan payments. Don't forget irregular and periodic big-ticket items such as vehicle repair/replacement costs, out-of-pocket health care costs and real estate taxes. Then write down nonessentials -- restaurants, entertainment and even clothes. Does your income easily cover all of this? Are savings a part of your monthly budget? Examining your expenses will help you plan and budget when you're building an emergency fund. It will also help you determine if what you're spending money on lines up with what's most important to you.

5. Focus on Debt Management -- Debt can derail you, but not all debt is bad. Some debt, like a mortgage, can work in your favor, provided that you're not overextended. It's high-interest consumer debt like credit cards that you want to avoid. Try to follow the 28/36 guideline, which suggests that no more than 28% of pre-tax income go toward home debt and no more than 36% toward all debt. Look at each specific debt to decide when and how you'll systematically pay it down.

6. Get Your Retirement Savings on Track -- Whatever your age, saving for retirement needs to be part of your financial plan. The earlier you start, the less you'll likely have to save each year. You might be surprised by just how much you'll need -- especially when you factor in health care costs. If you begin saving early, you may be surprised to find that even a little bit over time can make a big difference. Calculate how much you will need and contribute to a 401(k) or other employer-sponsored plan (at least enough to capture an employer match) or an individual retirement account. Save what you can and gradually try to increase your savings rate as your earnings increase. Whatever you do, don't put it off.

7. Check In With Your Portfolio -- If you're an investor, when was the last time you took a close look at your portfolio? (And if you're not an investor, think carefully about becoming one!) Market ups and downs can have a real effect on the relative percentage of stocks and bonds you own -- even when you do nothing. And even an up market can throw your portfolio out of alignment with your feelings about risk. Don't be complacent. Review and rebalance on at least an annual basis.

8. Make Sure You Have the Right Insurance -- Having adequate insurance is an important part of protecting your finances. We all need health insurance, and most of us also need car and homeowner's or renter's insurance. While you're working, disability insurance helps protect your future earnings and ability to save. You might also want a supplemental umbrella policy based on your occupation and net worth. Finally, you should consider life insurance, especially if you have dependents. Review your policies to make sure you have the right type and amount of coverage.

9. Know Your Income Tax Situation -- The Tax Cuts and Jobs Act of 2017 changed a number of deductions, credits and tax rates beginning in 2018. And that caught a lot of people by surprise as they filed last year's taxes. For instance, standard deductions were increased significantly, eliminating the need to itemize for a lot of people. To make sure you're prepared for the 2019 tax season, review your withholding, estimated taxes and any tax credits you may have qualified for in the past. The IRS has provided tips and information on its website. Taking advantage of tax-sheltered accounts such as IRAs and 401(k)s can help you save money on taxes. You may also want to check in with your accountant for specific tax advice.

10. Create or Update Your Estate Plan -- At the minimum, have a will -- especially to name a guardian for minor children. Also check that beneficiaries on your retirement accounts and insurance policies are up to date. Complete an advance healthcare directive, and assign powers of attorney for both finances and healthcare. Medical directive forms are sometimes available online or from your doctor or hospital. Working with an estate planning attorney is recommended to help you plan for complex situations and if you need more help. 

To me, a financial plan can be especially important if you don't have a lot of money, as it can help you get on the path to greater financial strength. Think of it like a road map. Whether you need to reduce spending and debt, up your savings or just refine the details, once you know where you are and where you need to go, you'll have a sense of direction. Then take necessary action steps and commit to moving forward. 

A financial planner can help you build on your work if you want additional guidance, analysis and direction. And if the time comes that you think you'll benefit from the help of a professional, you'll be that much farther ahead.

Carrie Schwab-Pomerantz, Certified Financial Planner, is president of the Charles Schwab Foundation and author of "The Charles Schwab Guide to Finances After Fifty." Read more at http://schwab.com/book.

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