Planning Your Way to Financial Security

The final pillar in achieving financial independence is planning. Planning encompasses managing your accounts, preparing for "what-if" scenarios, building an emergency fund, and simplifying your financial life. Why is planning crucial? A good plan helps you adapt as circumstances or markets change. Here are some ground rules for creating a good plan:

Digitize Your Financial Life: Keep a digital record of important documents. Save them in a cloud-based drive so they're easily searchable.

Simplify Your Accounts: Consolidate your various accounts—checking, brokerage, 401(k)s—into as few as possible with as few institutions as possible. This not only simplifies management but also gives you leverage when negotiating with financial institutions.

Do the Math: Use financial tools to calculate your path to financial independence. These could help you figure out when you can afford a house, how much to save for retirement, or plan for other significant life events.

If all this sounds overwhelming, don't worry. Tools like the one we offer at Xillion can make it easier, but even a simple spreadsheet can help you get started.