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What is Financial Planning? I like to think about it in a very simple way. You need to have clarity in your finances before you can have control. Once you have control, you can be very intentional.
Without clarity, you cannot have control. Without control, you cannot have intention.
When people first come to me, there is usually some acute pain, like owning too much company stock. We haven’t defined the amount of stock we should own, but we seem to know when we’ve gone far over the line. The clarity needed at that moment is to determine the right amount of company stock to own.
Once we have that target, we can begin to make a plan and exert control over our company stock to sell down to the amount that is right for us in the best way possible.
So far, We’ve Accomplished a Ton
We’ve addressed the acute pain we have, which is owning too much company stock. And we’ve built a plan to fix it.
Integrating the proceeds of our sales into the long-term portfolio. This allows the company stock originally awarded to support what we want to do in life and in our future.
In other words, it supports our desire to make intentional decisions not just about our finances but about our entire lives supported by our financial decisions.
This is just one aspect where clarity, control, and intention lead to a better life. We should use this model for every financial decision we make so they are all driving us toward our Best Financial Life.