The One-Page Financial Plan Summary


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Originally published at: https://blog.12min.com/the-one-page-financial-plan-summary/

The One-Page Financial Plan SummaryA Simple Way to Be Smart About Your Money


Earning money has become an inescapable pursuit, with no end in sight.

To help you better organize your resources, Carl devised a plan of activities that you must undertake in order to enjoy life thoroughly.

Our summary gives a preview of the financial plan and all its features.

Who Should Read “The One-Page Financial Plan”? And Why?

Sometimes, a beacon of hope is all we need. Nevertheless, it’s way better to be at the mercy of plans and facts, than to rely on mere luck and superstition.

The One-Page Financial Plan” is a book, designed to provide support to all people struggling to handle daily/monthly/yearly expenses.

We firmly recommend it to anyone in need of such guidance.

About Carl Richards

Carl RichardsCarl Richards is an American author born in Pittsburgh, Pennsylvania. He provides consulting services at Yahoo, and weekly columns for New York Times.

Carl is the author or coauthor of several books all in the realm of financing.

"The One-Page Financial Plan Summary"

As soon as we leave college, the money-mania transforms from a part-time job into 24/7 obsession. Even though most of us hate to admit it, we are all part of the same system.

Paying off your mortgage, providing good healthcare and education for you and your children, are only a few of the responsibilities one can think of.

All of these liquid assets must be pointed towards monthly liabilities in order for the person to stay on track – but, that’s easier said than done.

At the end of the month, if there’s nothing left in your bank account, you need a change of pace and plan.

Every journey starts with the first step, and investors know best that without proper planning, every endeavor is doomed to fail.

What is the deal about money? Do you want our advice? – Don’t skip town, when things are about to get serious!

Answer this question, examine your needs, test your capabilities and perhaps you’ll be able to turn the useless into useful.

In reality, money is just an exchange paper without real value, which reflects your status in the society.

Not only that finances give us a sense of independence and secure our future, but these assets also help us to understand our role in these hypocritic processes.

Let’s say that your main concern is spending quality time with your family and your yearnings for financial security are intertwined with the possibility of running a company.

Nevertheless, it’s not too easy to allocate all your resources (including time) to serve a higher purpose.

Being honest with yourself and understanding the value of money can assist you in measuring the impact of various factors – both internal and external.

Having well-defined goals and vision is an unavoidable approach if you intend to make your business grow and expand.

Nevertheless, the personal agenda is not too happy about the involvement on a professional level. Next in line is checking to see whether your goals fit your vision.

It’s evident that without the right set of skills, one cannot prosper in the long run. These individuals stumble on the very first obstacle, or as soon as some of the processes take a surprising turn.

Once you make a peace treaty with the future, you can then move over to the next stage.

Use the expertise you acquired over the years to remain flexible and not so easily disheartened by the passing situation. Rejoice in every opportunity and adjust your strategy to apply to your goals.

Write these plans down, be concise and clear when doing so!

How should the structure look like?

  • In the next two years, I plan to increase my yearly income by a whopping 100%!
  • Next year I’d like to pay for my daughter’s singing lessons.
  • I want to invest some of my savings into a low-yield bond or retirement funding organization.
Without these, be sure that you’ll get nowhere, and remain rooted in one spot. Your values provide you with an assessment and reveal the actual position and status.

Improving your decision-making depends on previous preparations, and the one mentioned above must be taken into account.

Having a clear understanding of your assets and liabilities will help you take the necessary steps to reach your goals.

To assess your current financial situation, Carl advises that you should draw or make a balance sheet. How to do it? - Draw a T shape on a piece of paper – put all the investments and liquid assets on the left side of the paper, and all your liabilities on the right side.

In the end, a simple mathematical calculation ends the endeavor. Subtract the liabilities from the savings, and you’ll ascertain your net worth.

We assure, once you reduce those expense, you’ll see such attitude illustrates an upward trend. Instead of paying for gas, use public transportation or a bike.

Find a way to improve your financial situation and don’t rest until the accumulated debt is paid.

Key Lessons from “The One-Page Financial Plan

1. Look broader and expand your perspective 2. Don’t deceive yourself with unrealistic predictions 3. Flexibility is like a key that open multiple doors

Look broader and expand your perspective

To do well, you need to make up a list of the monthly expenses to get the big picture.

Once you are finished with the process, you can then plan the budget and adjust your spending habits.

Find gaps in the structure and find a way to cut those unnecessary costs.

Don’t deceive yourself with unrealistic predictions

The minute a person becomes aware of its standings, it can begin planning its next move.

Basically, allocating these assets or budgeting explains the ability to make trade-offs between costs and investments.

Achieve your goals by planning them both.

Flexibility is like a key that open multiple doors

Before we execute this step, one must comprehend the unsurpassable truth of unpredictability.

According to management experts, being flexible is perhaps the most valuable trait one can have.

For instance, who would have thought 20-30 ago, that in the next few decades, the telecommunication industry will face a deadly opponent – The Internet.

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“The One-Page Financial Plan” Quotes

[bctt tweet="if you don’t ever find yourself recalibrating your decisions, you’re likely ignoring some issues that might become problems down the line." username="get12min"]

[bctt tweet=“Don’t be committed to the guess, be committed to the process of guessing.” username=“get12min”]

[bctt tweet=“When the paint on the car starts to chip and the gadget gets tossed into the closet with all the others, you can’t help but wonder if you’ve been pouring all your hard-earned money into the wrong things.” username=“get12min”]

[bctt tweet=“The best financial plan has nothing to do with what the markets are doing, nothing to do with what your real estate agent is telling you, nothing to do with the hot stock your brother-in-law told you about. It has everything to do with what’s most important to you.” username=“get12min”]

Our Critical Review

We can say with some confidence, that Carl’s instructions are much appreciated, and we certainly learned a lot.

Nothing can overshadow a practical book, enriched with all sorts of financial tips, assembled in one place to make our future brighter and better.