Many of my clients don’t think that the life planning part of financial coaching is necessary.
Instead they want to rush in and figure out how to make progress with their money.
Yet they do the life planning, because it is part of my requirements.
Know what happens after the life plan?
They cannot believe how much they learned by doing the life plan. They learn about themselves, what they want, about their spouses and so much more!
Here are some benefits of life planning. Hopefully, this helps you see how valuable this step is in planning for your financial future.
Can’t Make a Plan Without Knowing Where to Go
Without knowing where you want to end up in life, it is hard to determine the right financial path to follow.
You save money differently depending on what you are going to do with it. The life plan gives you the final destination that you want to arrive at, so you can plan the best route for you.
You are going to save differently for a vacation and retirement.
You will even save differently depending on what time of retirement you want to have.
Without the life plan, you may end up saving the wrong way.
Know Your Why
When things get tough it is easier to stick with a financial plan when you understand the why. The why is the life plan.
There are always road bumps along the way to your goals. These often make you wonder why you are trying to reach a specific goal.
Your life plan gives you the reminder of why you are trying to reach your goals.
It gives you the “Why” you get up every day to keep striving.
The life plan is actually a lot less touchy-feely than you think.
It involves determining what your priorities are, what your life should look like down the road and ends with specific goals.
These goals are what we use to create the wealth plan. A life plan is more like a business strategy plan.
You should run your money like it is your job. That includes having the right strategy and direction in place. Which only a life plan can do for you.
Find Alternative Ways to Achieve Goals
Sometimes we can achieve goals in life in ways that we don’t think about. The life plan assists us in finding that connection.
For example, lets say you have two goals that appear to have nothing to do with each other.
The first is to make sure your kids are given the right tools to be successful in life. Which in the beginning you assumed was leaving an inheritance.
The second goal is that you want to use your creative skills more.
You could achieve both without making your kids dependent by writing a memoir for your kids. This allows you to share the best life tools, wisdom, with your kids. While accomplishing your goals with creativity.
Life planning is a great way to give yourself the direction you need to find success and happiness. The two go hand in hand, by ensuring you have both you increase your chances of ending up where you want to go.
I challenge you today to take action in writing out a detailed plan for what you want your life to look like.
Life planning is not woo-woo. It is necessary in living the life you want to have.