Financial plans used to entail a man with a suit and tie delivering a 100-page paper document to a client who quickly had glazed-over eyes.
Introducing the one-page financial plan. Made popular by Carl Richards and adapted many times over, the idea is that many of the elements of a financial plan can be boiled down to a single page. Personally, I use two pages and call it a financial summary.
Here are the seven elements of that financial summary.
Goals - Briefly list both short and long-term goals.
Investment Allocation - What is the equity vs. bond makeup of your household investments?
Net Assets - Total list of all net assets. I specifically call this net assets instead of net worth in an attempt for people to unbundle their self-worth from their net worth.
Cash Flow - What are you spending on the five uses of cash flow?
Strengths, Challenges, Opportunities, and Threats - A high-level SWOT analysis.
Available Cash - What is your current cash position and upcoming cash needs? Do you have any cash over and above your emergency fund that can be put to work?
Next Steps - Specifically list next step actions that will be taken.
By regularly updating and managing the above seven financial elements an individual will have a much greater level of control and purpose to their finances.