How to Create a Financial Plan That Works for You in 2026

• By Clinton Wanjala

• 286

• Last updated Jan 3, 2026

Ah, financial planning... sounds fancy, right? Like something only rich people or business tycoons like Jimi Wanjigi need. But here’s the truth: everyone, whether you’re a hawker, mama mboga, broke college graduate or a middle-income millennial or Gen Z hustling to build wealth, needs a financial plan. And no, it doesn’t require spreadsheets the size of the River Nile or hiring a financial advisor (although that helps). It just needs you, a pen, some paper, and a willingness to figure out what’s what in your world of money.

So, let’s create a financial plan that actually works for you in 2026. Grab your coffee (or tea), sit back, and let’s break this down like old friends having a chat. By the way, my name is Clinton Wanjala.

Step 1: Figure Out Where You’re Standing

Imagine planning a road trip to lake Magadi (The Pink Lake) without knowing your starting point. That’s what trying to plan your finances without understanding your current situation feels like. 

If you want to create a good financial plan, it is good to determine your current financial situation. Figure  out your current net worth. To do this, start by listing your income streams which might include salary, side hustles, passive income (if you’re lucky to have one or more), and even irregular gigs.

Next, take a hard look at your expenses. Where does your money go every month? You don’t need a fancy budgeting app to figure this out. Go through your M-Pesa statement or if you are in a formal working set up bank statements or simply jot down the big ones; rent, food, Netflix, transport, 2 beers every Friday😂 and yes, those sneaky online shopping sprees.

The goal here? It's imperative to know your cash flow: what comes in and what goes out of your pocket. Finally summarize them into assets and liabilities. Assets can simply be defined as the things that you own that have value. On the other hand, liabilities comprises of value of what you owe inclusive of the current bills and outstanding debt. 

I will further simplify for you, use the charts below to calculate your current net worth.

Assets Calculation Chart

Liabilities Calculation Chart 

Assets - Liabilities = Net Worth

Remember, the charts above are just sample guides to act as a road map as you will be calculating your net worth. Feel free to modify the charts as you please to suit your financial situation. 

Step 2: Define Your Financial Goals

Why are you creating this financial plan? If your answer is, "Because everyone, including Clinton, says I should," then we’ve got work to do. A solid financial plan starts with clear, realistic goals.

Think short-term, medium-term, and long-term. For example:

• Short-term (2026): Save $1,000 for emergencies, pay off your credit card.
• Medium-term (3-5 years): Buy a car or start saving for a home.
• Long-term (10+ years): Build wealth or retire early.

Write these down and be as specific as possible. “Get rich” isn’t a goal. “Save Ksh. 60,000 monthly to invest” is.

Step 3: Budget Like a Boss

Now comes the part most people dread: budgeting. But hear me out—budgeting isn’t about punishing yourself. It’s about telling your money where to go instead of wondering where it went (familiar?).

For 2026, let’s keep it simple with the 50/30/20 rule:

• 50% of your income for needs (rent, food, bills-The things you can't do without).
• 30% for wants (dining out, hobbies, shopping).
• 20% for savings and debt repayment.

Modify these percentages if needed, but the key is balance. You can’t build wealth if you’re spending every shilling (or dollar) on stuff you don’t need.

Step 4: Emergency Funds Are Not Optional

Picture this: you lose your job unexpectedly or your car breaks down. Without an emergency fund, life can feel like quicksand. Aim to save at least three to six months’ worth of expenses in a separate, easily accessible account. I always encourage my readers to save their emergency fund in a money market fund, this way you have easy access to the money and it gains interest at the same time.

This isn’t your vacation fund, and it’s not for impulse buys. It’s your safety net. Start small if you must, even Ksh. 1000 a week. It adds up faster than you think.

Step 5: Tackle Your Debt Like a Pro

Debt is like carrying a backpack full of rocks—it slows you down. Whether it’s student loans, credit card debt, or that sofa you financed last year, it’s time to make a plan.

Two popular strategies can help:

1. The Snowball Method: Pay off your smallest debts first, then use that momentum to tackle the bigger ones.
2. The Avalanche Method: Focus on paying off the debt with the highest interest rate first (usually the smartest financial move).

Choose what works for you, but don’t just ignore your debts. They won’t disappear by magic. You must pay. 

Step 6: Invest in Your Future

Saving is great, but saving alone won’t build wealth. That’s where investing comes in. You don’t need to be a Wall Street genius to start. In 2026, even apps like Robinhood or M-Pesa Ziidi can get you started with just a few shillings/dollars.

If you’re new to investing, consider these basics:

• MMF-Open account in a good MMF (Initial deposit ranges but as low as 5,000).
• Real Estate: You don't have to buy an entire Unit, just some shares in a company like Qwetu hostles.
• Stock market: Buy shares in companies.
• Index funds: Spread your risk by investing in a basket of stocks.
• Retirement accounts: Max out options like 401(k)s or pensions if they’re available.

The earlier you start, the more time your money has to grow. Compound interest is your best friend—treat it well.

Step 7: Review and Adjust Regularly

A financial plan isn’t a one-and-done deal. Life happens. Maybe you get a raise, or maybe the economy takes a dip. Set a reminder to review your plan every quarter. Are you meeting your goals? Are there new expenses or income streams to consider?

This is also a great time to adjust your budget, increase your savings, or explore better investment opportunities.

Step 8: Get Advice When Needed

Sometimes, even the best DIY plans hit a snag. Don’t be afraid to consult a financial advisor for professional advice, especially if you’re dealing with complex investments or tax planning.

A good advisor will help you fine-tune your wealth management strategy and ensure your financial plan aligns with your goals.

Signing Out

I don't know whether I should feel sad that we've come to the end or happy that you have learnt something. 

Creating a financial plan isn’t about being perfect. It’s about being intentional with your money so you can build the life you want.

Start small, stay consistent, and keep tweaking until it feels right. By the end of 2026, you’ll look back and thank yourself for taking control of your finances. Maybe you'll thank Fineducke too for imparting you with financial education. 

And hey, don’t forget to celebrate the little wins along the way. Every shillings saved, every debt paid off, it all adds up.

Here’s to a financially awesome 2026!🍻