Planning Is A Continuum

There is an overall shape and order to planning. Many people try to do only part and as a result end up with disconnected and often ineffcient solutions to simple problems.

The overall structure

Personal financial planning involves these pieces:

Observe. Discover and understand your context. What the world rewards and punishes. What skills and attitudes you possess. How you can intertact with other people to make it easier. Know what you need to supply. Income, health, relationships. Context defines the possibilities and the limits.

Orient. How you match the world. Strengths and weaknesses. How the context changes in time. How you can estimate the time required to get what you want.

Anticipate. Risk – What might change that would hurt you or help you.  How will you manage risks as they develop? What resources must you contribute to take advantage of opportunities.

Organize. Priority of wants. Priority of resource development. How people interact with the context you are developing.

Decide. Allocate resources of time, money and people to address the priorities.

Act. Nothing happens until you act. Record your reasoning for the particular actions.

Review outcomes. No plan lasts long. Most have mistakes within and in all cases the context changes. If you don’t review what happens when you act, weak plans will survive and suck resources away from productive uses.

Revise. All good plans evolve. They often look quite different than people would have expected. Record, review and revise makes plans more effective adn more efficient. Relate to the original reasoning and evelop better methods. Then do it again every couple of years.

Here in the real world

No one does all thoise steps and most of the things that go wrong result from deficiencies in their application of the process. No matter. Plans evolve right? Part of the evolution is people eventually address all the pieces.In many cases the eventuall plan, while a little costly, is better. The people appreciate why the plan is the way it is.

Never give up on planning. Plans are always a little wrong at least. Mistakes add information about context or your ability to make decisions. Every iteration comes closer to good and then excellent. Planning is the skill. Plans are just measurement tools. Like in school. Tests show up the deficiencies and skills.

First step decide what you want and what you must contribute to get it. Then “Just Do It”

I help people understand and manage risk and other financial issues. To help them achieve and exceed their goals, I use tax efficiencies and design advantages. The result: more security, more efficient income, larger and more liquid estates.

Please be in touch if I can help you. 705-927-4770

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