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What a financial plan is actually for

A hand using a pen to point at a printed bar chart, laptop alongside

A plan is not a forecast. Nobody knows what the next ten years hold, and a document that pretends otherwise is worth very little by its second year.

What a plan is for is deciding, in advance and while nothing is on fire, what you will do when things change. Which commitments are fixed, which are preferences, and what you would sell first if you had to sell something.

That is why the first meeting is mostly questions and very few numbers. The numbers are the easy part.


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