Published by Ryan Cooley
Building a financial plan is like preparing for a road trip. You do not simply get in your car and go. You must first determine your starting point, then pinpoint the places you would like to see before reaching your destination, and finally decide the best route to take. A good financial plan is no different.
This seems like an easy question to answer. After all, the name itself defines what it is. However, there are some very important things to consider when building a financial plan.
Building a financial plan is like preparing for a road trip. You do not simply get in your car and go. You must first determine your starting point, then pinpoint the places you would like to see before reaching your destination, and finally decide the best route to take. A good financial plan is no different. It should be extremely detailed as to where you are beginning, where you would like to end up, and what intermediate goals you need to accomplish along the way.
Furthermore, just as looking at your map and progress during a road trip helps you plan for weather, road closures, potential detours, and more; your financial plan should do the same. This is why it is necessary to review your plan on an ongoing basis. It helps to make sure you are still on the right track and that you are adapting to any changes life throws your way.
If you would like to learn more about how you can successfully build and execute a financial plan, please begin by taking our Risk Tolerance Quiz to establish your risk level.
