Four Ingredients of a Great Financial Plan Script: (0012)
A great financial plan is more than just numbers in a spreadsheet. Typically for those numbers to become a reality, it requires four things.
Knowledge: Most financial plans are unsuccessful if you don't follow them. One of the primary roadblocks is a plan that's too complicated to understand. Knowledge is key. Ensure you clearly understand the plan's beginning, middle, and end. A complicated plan is usually not sustainable because you will lose sight of the end goal.
Process: Yes, a plan needs a process that you can follow. Identify the steps needed to accomplish the plan. Also, identify benchmarks along the way. Your process will also help navigate the emotional rollercoaster of bull and bear markets.
Habits: To accomplish your plan, you may need to start or stop a habit. Identify what those are and take the necessary steps to create them. Typically, they will not develop or change on their own.
Passion: Unless you have enough passion for following your plan…well…you will probably not follow it. Begin with the end in mind but make sure you are passionate enough about the end goal to stay the course.
Starting a financial plan can be exciting...finishing it can be rewarding. But we often get lost in the middle. Incorporating these four tips will go a long way to keep you motivated throughout the journey.