The End-of-The-Year Financial Plan Workshop: How To Prepare for 2025 Like A Pro
If you are a we-will-figure-it-out-eventually kind of person, booking dedicated time to sit down and put together a financial plan (or any sort of plan, in fact) may initially feel like pure and unabridged heresy. And yet, it’s no secret that financial success doesn’t just happen by accident: you have to be intentional. The best way to do this? A solid financial plan that has you covered from Day 1 (or, should I say, January 1st?). In this article you’ll find all the tips, insights and favorite to-do’s that will allow you to put together a financial planning session like no other. Are you ready to dig in?
But first, let’s answer the million-dollar question: why should you even bother putting together a financial plan? Isn’t a simple, easy-to-understand budgeting app enough? Why inject time, energy, and thinking power into a task that doesn’t resonate with the way we typically conduct our finances?
If every time you think about financial planning your brain evokes the image of a suited guy, brow frowned in deep concentration, while he tweaks and twists numbers across a super complicated Excel spreadsheet that only his boss can understand, you may have a misguided idea about what a financial plan should look like.
The truth is that personalized financial plans that work are not complicated or impossible to understand. Putting them together doesn’t take ages either. In fact, to create a working financial plan you don’t even have to use a spreadsheet, if that’s not your vibe (but, full disclaimer, I do love spreadsheets and I think they make your life easier. But I digress). Would you rather keep a simple document with a plain table? That works. Feel the sudden need to take things offline and go back to regular pen and paper? That works as well.
At the end of the day, what matters most is not the specifics (aka, the format), but the act of actually taking some time to intentionally think about all the things you want to achieve in your finances. When you do that and take some time to sit down and reflect, two almost magical things usually happen:
- The frenzy of everyday life recedes a bit, allowing you to finally see what has been happening. Or in other words, the quiet time provides a much-needed dose of perspective. Suddenly, small “mistakes” that happened throughout the year (expensive tire replacements and unexpected HVAC repairs, I see you!) suddenly lose some of their initial severity. Yes, that housewarming party may create a chain of events that led you to pay for an emergency carpet cleaning service… but it’s not the end of the world. And now you know it.
- You realize that, after all, you are doing 100% your best. And that’s all that matters. Yes, the year may have had its rough patches. You may have even felt the nudge of hopelessness here and there, poking its ugly face through your dreamy living room windows. And yet, that’s not what’s important. What matters is that you did your absolute best, you really did give this a go. Now, you’re basking in that feeling of quiet confidence (or, should I say, money confidence?) that comes after completing a good job.
In short, engaging in a dedicated Financial Planning exercise, whether it is on your own, along with your significant other, or with the help of a certified professional, is one of the best ways to connect with all your past financial wins and, at the same time, open the door to all sorts of new possibilities and aspirations. In a way, it’s 100% self-care time.
The Elements of Solid Financial Plan
As you probably already know, I’m a big believer in having proper frameworks and structures in places. Financial plans are no exception. For me, a solid financial plan contains the following key ingredients:
- Big, ambitious goals. These are a must and the backbone of your financial plans. The goals you set for yourself will set the tone of all your 2025 financial decisions, which is HUGE. When you set your goals, be sure to remember that they must speak to you. The deeper they go, the better. Avoid the common trap of adopting goals that “everyone should aim for” or things that your family and friends consider important (but deep inside, you know are not your thing).
- A clear picture of how you envision your life to be. It may sound a little bit woo woo, but describing in a short paragraph how you envision your next year unfolding will boost your motivation like nothing else. The caveat? As with goals, that description has to be authentic and 100% you. It may be tempting to write down something generic or not too personal, but when you do that the positive effects are just not the same.
- A recurring thing/habit that you want to change in 2025. Let’s be honest: we all have behaviors and habits that don’t make us that proud. Maybe you spend far too much time on social media, or buy far too much yogurt. Maybe, for some weird reason, every time you go to Target you end up buying office supplies that you don’t really need (#guilty). Whatever that pesky little habit is, this is the section where you will explain it in detail… and commit to change (bit by bit, of course).
- A summary of all your current numbers (aka, the state of your finances). As hard as this step may be, it is a must because, if you don’t know where you are standing now, planning for the future becomes an exercise in wishful thinking. If you are stuck in this step, give yourself some time to feel and process all your feelings, even if they are negative.
- Your overall budget for 2025. It doesn’t have to be super detailed. Your budget may ebb and flow during some points of the year, and that’s ok. All you need now is a general idea of the categories in which you will be allocating your income.
As you can see, the overall structure is quite simple and totally not complicated. If you book a couple hours with yourself on a Saturday afternoon with all your receipts, your 2024 budget, and a good cup of coffee, you will go miles towards a fab 2025 kickstart!
And if you are the type of person who prefers more structured guidance (aka, a full workbook to make your creative juices flow), don’t forget to grab a copy of my Money Planner, which will walk you through the Financial Planning process step by step.
Get your copy here in English or Spanish!
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