So the basics of a workable financial plan are
- Identify what needs to be done. Where are you? and not where you want to be?
- Define when you will reach the goal.
- KIS/KIF Keep it Simple, Keep it Flexible.
- Explore (in written form) possible paths to reach your goal.
- Prioritize the activities along the path you have chosen to reach your goal.
- Evaluate your plan. At least once a month track your progress on some visual medium.
- Keep pushing toward the target date.
- Close it out. Evaluate where your plan was successful. Indentify where your plan was not successful and make that the goal of your next plan.
Without a financial plan we have a tendancy to get too wrapped up in the present and we lose perspective of how to address what tomorrow may bring. If we intend to grow in any part of our personal or professional lives we must map (plan) what we want our future to look like.