(How to create a financial plan that best suits you - now and over time)
Following on from my previous post about finding your Sweet Spot to improve your overall financial fitness, it’s time to talk about how you can make that happen for yourself.
Essentially, in this series of blog posts, I’ll provide a summary of a step by step system or framework you can follow to structure your Financial Planning in a way that aligns with who you are as a person. This is the same system I use when working with my clients to help them create and follow a financial plan that best suits them now and overtime.
By following these 5 steps, you’ll increase your chances of long term financial success because the plan you create (and follow) will be comfortable and sustainable for you - because it’s designed specifically for you.
So, without further ado, the 5 steps are;
Getting clear on what you want, why you want it, where you’re starting from and what you need to overcome to get there.
Creating a personalised plan that will lead you where you want to go in a way that best suits your situation, goals and values.
Putting your plan into action by setting up the structure and foundations required to support your long-term success.
Sticking with your plan by doing the regular behaviours required to achieve actual progress over time.
Reviewing your goals, values, plans, actions and regular behaviours to confirm if they are still appropriate to progress towards your goals after taking into consideration life changes over time.
It’s important to note here that each step leads into the next. The order shown is important because by successfully completing each step (in the correct order) you are best prepared to complete the following step/s which creates momentum as you move through the system. As a whole, the steps are interconnected and work synergistically, that is, they are a powerful combination and more powerful when followed all together than if done in isolation.
As an example, just think of your own body. Your heart, brain and liver are all vital organs and important in their own right. However, they are only vital in their ability to connect and work with each other and the rest of your body. If you don’t have a brain, then there is no need for your heart or liver and vice versa.
Another way of thinking about that idea is to imagine a house with walls and no roof or a roof and no walls. One without the other is more or less pointless, however, when together they are a powerful team.
The thing to remember here is that if you don’t complete a step correctly or you skip a step/s then the power of the system is diminished. It just doesn’t work.
But for those who are willing to follow the process properly and nail each step, the reward is a personalised plan which is much easier to implement and follow in order to achieve their desired results. From all my years of experience as a Financial Adviser and in my former career, as a Personal Trainer, I have come to realise this system really works in helping people progress towards what they want. Whenever I meet people who are not getting the results they want, I can usually trace it back to them either skipping a step, not completing a step correctly or completing a step in isolation with no links to the other steps.
So, with all that said, let’s take a closer look at the first step of the system – Step 1) Awareness.