How to Create a One-Page Financial Plan
Can a financial plan fit on one-page?
Creating a financial plan can be overwhelming. We are busier than ever, and with so much information available, crafting a good plan can feel like a heavy lift.
You are likely already doing some good things — saving, investing, and thinking about the future for your family. It's just a matter of getting organized to make the most of your money. A one-page plan can help do just that by serving as your map to accomplishing goals.
How to create a one-page plan
1. Ask Why.
Ask yourself why money is important to you?
The answer to this question lives on the top of your plan, and acts as your guide. It’s the reason you’ll make certain decisions and avoid others.
Anytime you are facing a decision, ask yourself if it gets you closer to your why. It might look something like this:
Why is money important to me?
- I want to spend as much time as possible with my family
- So I can travel for adventure with my family
- To promote and protect the environment
2. Define your goals
The next step is listing your goals. Don’t stress about the process, give yourself permission to relax and understand that much of this is guesswork that will evolve over time. Think about the next 3 months, 1-year, 3-years, and 5-years+
Goals:
- Get organized and gain confidence in my financial situation
- Understand where my money is going and how my benefits work.
- Save more money toward building wealth and long-term investments
- Understand insurance and if my family is protected
- Buy our next house and determine how much we need to save
- Fund our retirement & kid’s college education
- Buy a farm in Montana
3. Create next steps and action items
Last, lay out the action items you'll need to start meeting goals and set a timeline for each set of item.
Next Steps:
3-6 months
- Talk to your partner about their priorities in retirement
- Create a balance sheet and income statement
- Track and analyze spending for the last 6 months
- Set up monthly investment contributions & evaluate allocations
- Put aside $2,500 for travel
- Review current insurance coverage types, amounts, & cost
- Etc...
By following these steps you have a financial plan! Keep in mind the plan will need on-going attention and updated often. As you move forward make sure to check completed tasks off the list but keep them for reference, it helps to show progress you are making.
Thinking about your goals consistently and becoming intentional with your decisions is key to move toward achieving them.
If you'd like help setting up a one-page plan let's talk!
