Subscribe
Share
Share
Embed
Retire With Confidence is the podcast designed to help you move beyond the fear of the complexity of finances so you can be financially free to achieve personal significance. Tune in with Josh Duncan each week to turn fear into fuel that drives you into Freedom & Significance.
Are you feeling overwhelmed by all the moving parts of your financial life? You've got investments in one place, insurance in another, your mortgage somewhere else, and it feels like every financial decision you make is a one off. You might have even thought, I know I should have a financial plan, but I don't have time to create a 30 page binder that's outdated the minute I print it. If that sounds familiar, this video is for you. Today, we're going to walk through how to create a one page financial plan.
Josh:A simple, practical, and powerful tool that helps you get organized, stay focused, and make confident financial decisions. By the end of this video, you'll know what a one page financial plan is, and why it's so effective. The five essential components to include, and how to use your one page plan to guide your decisions and measure progress over time. And don't worry, this isn't about fancy spreadsheets or financial jargon. I'm going to show you how to capture what matters most on one clean, easy to use page.
Josh:So grab a notebook because by the end, you'll have a roadmap you can actually use, not just something that collects dust. Let's start with the big question. Why one page? Well, when most people hear financial plan, they think of a giant binder or a thick PDF full of charts, projections, and spreadsheets. Those documents look impressive, but here's the truth.
Josh:Most people never look at them again after the first meeting. A one page financial plan, on the other hand, distills everything that matters into a clear, concise summary. Think of it like the dashboard in your car. You don't need to know every detail of how the engine works to drive safely. You just need a few key gauges that tell you whether you're on track or need to make an adjustment.
Josh:That's what your one page financial plan does. It shows you where you are today, where you wanna go, and what needs to happen next. Now, here's something interesting. Carl Richards, a well known financial planner and author, popularized this concept in his book, The One Page Financial Plan. And his message is simple, clarity beats complexity.
Josh:Most people don't fail financially because they lack intelligence. They fail because they lose focus. So your one page plan becomes your anchor. Something you can glance at any time and say, am I living in alignment with what matters most? It's not a report, it's not a budget, it's a decision making tool.
Josh:Every great financial plan starts with your why. Before you ever even start listing assets, goals, or investment accounts, you need to answer one question. What's the money for? Most of us were never taught to start there. We start with numbers.
Josh:How much to save? What funds to pick? How to pay less in taxes? But without a why, those numbers have no meaning. Your why is your personal definition of success.
Josh:It could be things like having the flexibility to spend more time with your kids. Having the freedom to volunteer more. Traveling more to lean into your photography hobby. Or giving generously to causes you care about. Or simply feeling secure that you're doing the right things financially.
Josh:Here's a simple way to frame your why. I want to achieve financial freedom so I can fill in the blank. For example, I want to achieve financial freedom so I can spend more time with my family without worrying about money. That one sentence becomes your North Star. It's the top of your one page plan, right under your name.
Josh:Whenever you're faced with a financial decision, whether it's buying a new home, changing jobs, or investing in a new business, you can ask, does this move me closer to my why or further away? That clarity changes everything. Without it, you'll drift chasing financial goals that may look good on paper, but don't align with your real values. So take a few minutes to write down your why. Don't worry about getting it perfect.
Josh:It can evolve over time. The point is to connect your money to your meaning. Now that you've defined your why, the next section of your one page plan is your current reality. This is your financial snapshot. A high level summary of where things stand today.
Josh:Think of it as your starting line. Here's what to include. Assets, list what you own, things like your bank accounts, investments, real estate, and retirement plans. Group them by category. Liabilities, list what you owe, such as your mortgage, student loans, car loans, or credit cards.
Josh:Now your net worth. Subtract liabilities from assets to calculate your net worth. You don't need to list every penny, just capture the big picture. For example, instead of saying Chase checking account $3,482, just write cash, approximately 3,500. Keep it simple.
Josh:The goal is to see your financial health at a glance, not track every transaction. Now on a side note, it is important to know where your money is going, and there are great tools to help with that. However, your one page plan is the first step in knowing how you're saving and spending is supporting your vision. Now next, you'll want to note your income and expenses. This isn't a detailed budget.
Josh:It's more like a snapshot of your cash flow. List your total monthly income and your total monthly expenses. If you wanna get fancy, you can break it down into three broad categories. Essentials, things like housing, food, and transportation. Lifestyle, so dining out and vacations, entertainment.
Josh:And also future savings, investments, debt payments, things like that. Now when you lay this out on one page, it gives you incredible insight into how your money flows, and whether that flow aligns with your goals. Finally, include a brief note about your insurance coverage and estate documents. Just enough to show that these boxes are checked. Something like life insurance in place, $1,000,000 twenty year term policy, And estate plan completed, wills and powers of attorney updated 2023.
Josh:Again, this is a dashboard, not a deep dive. When your financial life changes, and it will, you can easily update this section. That's part of the beauty of a one page plan. It's simple enough to stay current. Once you know where you are, it's time to decide where you wanna go.
Josh:This section lists your top three to five financial goals. Notice I didn't say 10 or 15. When you focus on too many goals, you lose focus on what's most important. Your one page plan forces you to prioritize. Here's how to do it.
Josh:Start by brainstorming everything you'd like to accomplish financially. Don't hold back. Just get it all on paper. Then narrow that list down to the top three to five that truly matter in the next five to ten years. Here are some examples.
Josh:Reaching financial independence by age 60. Paying off your mortgage within ten years. Building a college fund for your kids. Increase charitable giving to 10% of income. Start a business or transition out of corporate work.
Josh:Each goal should include three things. What you want to accomplish, a target date, and a measurable outcome. For example, save $2,000,000 for financial freedom by age 60. Or fund 100% of college costs for two children by 2035. You don't need perfect precision, but be specific enough to track progress.
Josh:Then, and this is critical, make sure each goal connects to your why. If a goal doesn't align with your deeper purpose, it may not belong on your plan. Here's an example. Let's say your why is to have more flexibility for family time. Well, if one of your goals is to buy a second home that adds financial stress and eats up weekends with maintenance, that might actually conflict with your core purpose.
Josh:Your one page plan keeps those trade offs visible. And remember, this is a living document. You can adjust goals as life changes. The point is to have clarity about what you're working toward so your day to day financial choices have direction. Now we move from the what to the how.
Josh:This section lists the specific next actions that will move you toward your goals. Think of it as your financial to do list, but prioritized. Each goal should have one or two concrete steps attached. For example, your goal of saving $2,000,000 for financial freedom. Action, increase four zero one k contribution from 10% to 15%, or open a Roth IRA for my spouse and contribute $7,000 this year.
Josh:Your goal of paying off mortgage in ten years. Add $500 per month to a high yield savings account to create my mortgage payoff fund starting January 1. A goal of building an emergency fund. Well, the action is set up automatic transfers of $500 per month to a high yield savings account. The key is to focus on what you can do in the next ninety days.
Josh:Why ninety days? Because it's short enough to stay motivated, and long enough to make real progress. After ninety days, review your plan. Check off what's completed, and identify your next set of actions. This will help you keep your plan updated, which we will discuss in step five.
Josh:This is how you build momentum. You don't have to overhaul your entire financial life overnight. Just keep making consistent, meaningful progress. I often tell clients, financial planning isn't about predicting the future. It's about making the next right decision with the information you have today.
Josh:That's what this section captures. It turns big goals into small, repeatable wins. The final piece of your one page plan is your review rhythm. A plan you never look at again doesn't help anyone. So set a cadence for reviewing and updating.
Josh:Gee, how about every ninety days? At a minimum, I recommend revisiting it every quarter or ninety days. Here's a simple rhythm you can follow. Every quarter, you review your goals and action steps. Write down your goals for the next quarter, and then update your balances, check your progress, and note any changes in income, expenses, or insurance.
Josh:And then every year, you wanna revisit your why and long term goals. Make sure they still reflect what matters most to you. This rhythm keeps your financial plan alive and keeps you focused on what's controllable. Here's a truth I've learned after years of working with families. Life changes faster than most financial plans do.
Josh:Your income, expenses, family situation, health, priorities, they all evolve. Your one page plan evolves with you. That's why it's so valuable. You don't need to reinvent the wheel every time something shifts. You just make small updates, and you're right back on track.
Josh:Over time, this document becomes the story of your financial journey. Where you started, what you've accomplished, and where you're headed next. Before we wrap up, let's talk about a few common mistakes people make when creating or using their one page plan. Mistake number one, over complicating it. Remember, the goal is clarity, not comprehensiveness.
Josh:You don't need to cram every detail of your financial life onto one page. Focus on what truly drives your decisions. Mistake number two, treating it like a static document. Your life will change, your plan should too. Review it often, update it, and don't be afraid to make adjustments.
Josh:Mistake number three, ignoring the why. It's easy to skip straight to the numbers. But without a clear purpose, your financial plan becomes just another spreadsheet. Your why is what gives meaning to the rest of the plan. Mistake number four, trying to do it all at once.
Josh:If you try to tackle every financial goal simultaneously, you'll burn out and give up. Focus on the next one or two actions you can take right now. This is why Dave Ramsey preaches the debt snowball, so you can focus on the next easiest debt to pay off. Mistake number five, doing it in isolation. Even though the one page plan is simple, having a family member, friend, mentor, or advisor to guide you through it can make a huge difference.
Josh:Another person helps you see blind spots, stay accountable, and make sure your plan is optimized for your unique situation. Taxes, investments, goals, and beyond. As Proverbs 2seven 17 says, as iron sharpens iron, so one person sharpens another. So yes, you can absolutely create your one page plan by yourself. But if you want professional perspective, a trusted friend can help you make it even more powerful.
Josh:Let's pull this all together. Your one page financial plan has five key sections. Your why, what's the money for? This is your foundation. Where you are today, a clear snapshot of your financial life, assets, liabilities, cash flow, insurance, estate basics.
Josh:Your goals, the top three to five financial outcomes you're working toward. Your action steps, specific next moves for the next ninety days. And your review rhythm. A process for checking in and updating regularly. That's it.
Josh:One page that can bring your financial life into focus. Now, let me be clear. This one page doesn't replace detailed analysis. You still need to manage investments, review taxes, plan for financial freedom, and handle insurance and estate planning. But the one page plan keeps everything anchored to your values and priorities.
Josh:It's your compass. Every financial decision, big or small, runs through this filter. Does this move me closer to my why? If it does, great. If it doesn't, maybe it's not the right move.
Josh:This would be a good time to consult with the trusted friend or advisor you have engaged to help you. That simple framework can save you from years of wasted effort and misaligned decisions. Remember, your one page plan isn't about perfection. It's about direction. Don't have to have it all figured out to start.
Josh:You just need to take the first step, and then keep moving forward. So let's recap the big takeaways from today. First, a one page financial plan helps you stay focused on what really matters by keeping your goals and values front and center. Second, start with your why. Define what financial freedom means to you personally.
Josh:Third, get a clear picture of where you are today. Your assets, debts, income, and insurance. Fourth, set your top goals and link them directly to your why. Fifth, identify the next ninety day actions that move you toward those goals and review your progress regularly. That's it.
Josh:You don't need complexity to make progress. You need clarity, consistency, and a plan that reflects your life. If you'd like to see what a one page financial plan looks like, we've created a free template you can download. Use it as your guide to get organized, take control, and start building toward your version of financial freedom. I'm Josh Duncan, partner at F5 Financial Planning.
Josh:If you would like to learn more about how we help our clients achieve financial freedom for personal significance, please visit our website at www.f5fp.com. Thanks for watching, and I'll see you in the next video.