How to Build a Financial Plan in Your 20s - 3

Action Item: Write down your answer to “Why is money important to you?” for your money decisions this week, then use it to guide one financial choice.SummaryIn this episode, I break down how to build a simple and effective financial plan in your 20s. I explain that financial planning doesn't have to be complex or expensive. It's about creating a roadmap that aligns with your personal "why" for money. I share my experience creating a financial plan with my wife, emphasizing how starting with your motivations makes decision-making clearer. The episode covers the power of automation, the importance of starting early with investing, insurance considerations, and basic estate planning needs. A detailed case study of Jordan, a 26-year-old marketing manager, demonstrates how to create a one-page financial plan that builds toward financial independence.Resources & Links MentionedOne Page Financial Plan by Carl Richards: https://amzn.to/3IIoXj5Rule of 72 for calculating investment doubling timeDIME formula for life insurance needs: Debt + Income replacement + Mortgage + Education costsRelated FPYA episodes:Key Timestamps[02:10] What is financial planning? A roadmap for your money[09:51] Starting with your financial "why"[16:11] The power of automation in managing money[21:27] Case study: Building Jordan's one-page financial plan[26:08] Simple investing strategy for long-term growth[29:11] Insurance planning: Disability and term life insurance[34:39] How your financial plan evolves through life stages[37:54] Key takeaway: Financial planning can be simpleEmail me at [email protected] may earn affiliate commissions