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photo by steed media service
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1.
It provides a process for you to determine where you are currently:
your income, your expenses, your debts, your liabilities, your
insurance protections and also your savings in terms of what you should
have. It is an excellent starting point for being able to reach
financial goals.
2. It gives you a defined
process for setting financial goals. Its hard to hit a target that you
haven’t set. What I see in practice is that most people’s
relationship with their finances is a reactionary relationship. A
written financial plan is a definitive process for you to be able to
actually set some goals. If you don’t define where you’re
going to go, you’re never going to get there.
3. It gives
you a realistic action plan for reaching your financial goals. A lot of
people [say] ‘I’m going to send my kids to school,’
or ‘I’m going to retire,’ but if you don’t
really find out what it’s actually going to take to do that,
it’s difficult to [achieve] whatever it is they’re trying
to do. A financial plan enables you to take action steps: Do you have
an adequate amount of money? Did you hit your goals? The plan
