Why Everyone Needs a Financial Plan (No Matter Your Income)

We all live in a world where money has a significant impact on our lives, both in the short term and the long term. It holds more power over us and how we feel about ourselves than we'd like to admit. And here's the interesting thing: just having more money doesn't solve the problem.

I've seen people with six-figure and even seven-figure salaries stress about money just as much as those making minimum wage. That's what makes money so tricky. 

It's not just what you have — it's more about what your expectations are. Your lifestyle tends to expand to match your income, regardless of how much you earn. This is why I believe that everyone needs a financial plan, no matter their net worth or income level. 

A well-thought-out plan does two things for you. First, it reframes the present and helps you make better short-term decisions. When you know where you're headed, it's easier to say no to impulse purchases and yes to investments in your future. Second, it can also relieve some anxiety around money. 

Think of it like having a clear roadmap — you might not love every step along the way, but you're building toward something meaningful. 

However, you might not like some of the outcomes. Maybe you need to spend less or do without certain luxuries. But here's what I've learned: temporary sacrifices lead to permanent choices. The plan also allows you to spend extra money without guilt. Once to contribute to your plan, it's ok to spend the rest on luxuries, experiences, and charities.  

Since I was thirty years old, my plan only had two main goals: send my kids to college and have choices later in my career. That's it. Simple, clear, measurable. 

This informed my income goals, spending limits, and net worth targets. It also forced me to value my time differently. Every decision was filtered through these two priorities. 

Over time, I've accumulated a few trimmings and trappings, but only after my two primary goals were met. Your goals may be different, but I think we all want choices as we get older. Maybe it's scaling your business, taking calculated risks, or having the financial cushion to pivot when opportunities arise. 

If you don't already have a well-thought-out long-term financial plan, I suggest you work on it. Start simple. Write down two or three things that really matter to you. There are tons of resources in the form of books, podcasts, online resources, and financial planners. 

The best time to plant a tree was twenty years ago. The second-best time is today. 

People who plan tend to achieve significantly better financial outcomes over time. It's not about being perfect—it's about being intentional.