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The real value of a financial plan

financial plans and their real value


The number of new clients I work with who do not have a current financial plan, or who have never had a plan is astounding. The terms financial advisor, and financial planner have for whatever reason become synonymous with someone who simply picks your investments for you, and answers other financial questions if your lucky.


The basis of any financial planning, or financial advisor relationship is based on having a proper financial plan. After all, how can you determine how much you should be saving, how much risk you should be taking, and how much you need for your goals, if you haven’t created a plan?




The value of a financial plan is simple. It allows you to make informed choices about your financials, rather than guessing. For most people, they don’t know what difference it will make to their future if they save $500 a month or $750 a month. Since they don’t know, they can’t see the value. If you can’t see the value, you are far more likely to spend that additional $250 a month than you are to save it. On the opposite end of the spectrum, we see those who are so stressed and anxious about their money that they hoard it, refusing to take on any risk, and living an extremely frugal lifestyle unnecessarily.