Start financial planning with your actual numbers before deciding how much to save or invest. This guide walks through a financial check-up, goal setting, a monthly plan, and a review schedule. It distinguishes the general themes of the Money Buffalo video from guidance published by the Bank of Thailand (BOT).
What the Money Buffalo video discusses
The referenced video, “Too Old Before Becoming Rich?”, discusses inflation, the difference between assets and liabilities, debt management, emergency savings, investment diversification, regular investing, and financial independence. These topics provide general context; they are not a portfolio formula or a promise of returns for every viewer.
Step 1: Record your net worth and cash flow
List your assets and debts as of the same date, then calculate assets − liabilities = net worth. Record income, expenses, and savings to see how much is left—or how much you are short—each month. The BOT identifies a financial check-up and income-and-expense tracking as starting points for planning.
Use records you can verify, such as bank statements, bills, and debt-payment histories, rather than estimating from memory. For irregular expenses such as insurance premiums or tuition, convert them to a monthly amount so the plan reflects the full cost.
Step 2: Set measurable goals
Write each goal as an amount and a deadline—for example, saving THB 60,000 for an emergency reserve within 12 months, or reducing a specific debt by a target date. A clear goal lets you estimate the monthly amount to set aside and rank priorities against your needs and financial capacity.
If you have several goals, prioritize essential costs and high-cost debt before medium- and long-term goals. Do not set a savings target that leaves too little for basic expenses or payments that are due.
Step 3: Make a realistic monthly plan
Decide how each pay period will cover essential expenses, debt payments, savings, and other goals. The BOT recommends making a plan that fits your income and financial obligations. If spending exceeds income, identify expenses you can reduce or ways to increase income instead of borrowing more without assessing your ability to repay.
| What to track | Record | Question to ask before changing the plan |
|---|---|---|
| Income | Net income and payment dates | Does income vary by season or month? |
| Essential expenses | Housing, food, transport, and family obligations | Can any cost be reduced or planned for earlier? |
| Debt | Outstanding balance, payment, and contractual interest rate | Are payments on time, with enough left for essentials? |
| Savings and goals | Amounts set aside and target dates | Are the goals still realistic given current income? |
Step 4: Separate emergency savings from investments
Keep money for an income interruption or emergency separate from money intended for long-term goals. The BOT gives a general emergency-savings guideline of three to six times monthly essential expenses and debt payments. Consider income stability, family responsibilities, and available benefits when deciding what is appropriate for your situation.
Before investing, identify the goal, the time before you may need the money, and the level of risk you can tolerate. Diversification and regular investing do not guarantee gains or prevent all losses. Read official product information and risk disclosures before making a decision.
Step 5: Put the plan into action and review it
Schedule a review at least every six months, as the BOT advises, and revisit the plan sooner if your income, debt, family responsibilities, or goals change. Compare the plan with actual results and adjust what no longer fits. You do not need to change investments or your portfolio every time the market moves.
A one-week getting-started checklist
- Gather records of income, expenses, debt, and savings.
- Calculate net worth and the amount left each month.
- Choose one priority goal, with an amount and deadline.
- Set a savings amount that still leaves room for essential expenses.
- Schedule your next review.
Continue with how to review your financial plan each year, the emergency fund planner, and the financial health checklist. You can also use the financial health check to start organizing your information.
Sources and scope
- Bank of Thailand: Financial planning steps — financial check-up, goals, planning, and reviews at least every six months.
- Bank of Thailand: Saving — the purposes of savings and separating money by goal.
This article provides general information. BOT guidance is a planning framework, not individualized investment advice.