Done correctly, its ultimate purpose is to be a road map, a guide, the central piece in financial decision making.
It increases accountability drastically the same way a trip to the dentist would increase the odds of you brushing your teeth.
It allows us to run what-if life scenario tests to see how we’re doing and how things may play out.
The plan prevents us from seeking advice from historically well-intentioned, but not well-informed sources (i.e. family/friends, google searching, work colleagues, etc.). These sources base their advice on “rules of thumb” and not what fits our specific lives. We can’t blame them, they don’t know our personal financial situation. They can’t see and don’t know our plan.
Ultimately, it serves to increase your peace of mind and reduce your daily stress.
