You Need a Financial Plan

You need a financial plan. A financial plan is a comprehensive, personalized roadmap that outlines your current financial situation, future goals, and the actionable steps required to achieve them. It guides your management of income, expenses, debt, and investments, helping to secure your financial future and reduce stress.

This differs from a spending plan, which is simply a monthly plan for where money will go for that respective month. A spending plan ensures inflow matches outflow and zeros out through zero-based budgeting. Every dollar gets a job. This is only one small part of the financial plan. The financial plan is more comprehensive and has more moving parts. Each part intentionally serves the short-term and long-term goals of an individual.