Before you plan, if you invest or participate in markets at all (even if only as one who earns and spends) finance is just finance. It’s numbers and averages, it changes quickly and it can be alternately exciting and scary.
In the process of planning you begin to understand the choices YOU can make to get from your HERE to your THERE. You can see your NOW as a step on the path to all your hopes and dreams. Each step along the path is easier when you know which choices to make
You quickly learn that the minute-by-minute noise of the financial world is not just pointless, but DELETIVE, of your plan’s success. You are the protagonist of your story; the more the catastrophist media pulls your attention away from your plan, the more clouded your choices will become.
When you understand the noise as noise, you can calmly make the choices your plan calls for – saving a little of each earning, investing according to your plan, rebalancing as necessary, reviewing annually to see how life changes might effect the plan.
With good choices, it ALL comes out in the end… and this is not a slight point. It is THE point. No one can predict any of the short-term outcomes consistently.
This purpose of the financial plan is to understand the personal choices you need to make regardless of the short-term changes.