Do you ever feel like adulting comes with a secret rulebook no one gave you? One of the most powerful “secrets” to a smoother future is something that might sound a little boring at first: financial planning. In truth, though, it’s far from dull. It’s less like sitting through a math class and more like playing a strategic game where every smart move sets you up to win. Think of it as your personal advantage—the closest thing life has to a cheat code.
This isn’t just about stashing cash for a new phone. It’s about laying the groundwork for your dream life—no matter how you define it. Want to travel the world? Buy your own place? Start a business? Financial planning makes it possible.
If you are interested in learning more about the benefits of financial planning and how to get access to the spreadsheet template that I use, keep reading.
What is financial planning?
Financial planning means thinking ahead about your money — budgeting, saving, managing debt, building an emergency fund, planning for big purchases, and even saving for retirement. It’s about creating a written (documented) roadmap that helps you make smarter decisions, avoid stress, and feel more secure.
Why a written plan matters
Having a written financial plan provides considerable benefits, including measurable improvements in wealth accumulation, investment returns, and goal achievement, while reducing financial stress. Here is a summary of key benefits, supported by financial research and studies:
The reality check: Where many young adults stand
Here’s what the data tells us about how well people are planning their financial futures:
- Many lack a plan – nearly half of Americans don’t have a written financial plan — and that includes budgeting, goals, or a strategy for savings. The top reasons cited for not having a plan are the belief that they do not have enough money to merit one, do not know how to get started, or that it never occurred to them.
- Emergency savings are scarce – financial experts recommend having money set aside for unexpected costs like medical bills or car repairs — about 3–6 months of expenses. But less than half of adults have enough emergency savings to cover even three months of expenses, and many have none at all.
- Debt is real – millions of young adults are still carrying student loan debt, credit card balances, and more — and without a strong plan, interest can make that debt harder to beat.
How to create a financial plan and keep it updated
There are several paths you can take to build a financial plan, depending on how much control—or convenience—you’re looking for.
- The DIY approach: Use spreadsheets for maximum customization and flexibility, allowing you to track every detail exactly how you want it.
- Digital tools: Leverage automated applications that provide a more structured, user-friendly experience with less manual entry.
- Professional guidance: Hire a financial expert to build a comprehensive plan and handle the ongoing updates for you.
Importantly, a written financial plan is not static – it is a “live” document that needs periodic attention and updating.
To learn more about the different methods for creating your financial plan and why it needs to be updated periodically, download this information brief.
Everyone needs a financial plan!
Financial planning isn’t just for “old people” or wealthy execs. It’s for you, right now. It’s the ultimate tool to design a life you want, free from constant money worries. So, what are you waiting for? Now is the time to level up!
If you are familiar with spreadsheets and would like to see the DIY financial plan template I use to manage our family finances, please send an email to ed@diymoneytrack.com with “Send DIY fin plan” in the subject line.
It Pays to Know!