We mentioned earlier that "do it yourself" financial planning could be an option for you IF you have the available time, energy, discipline and wherewithal. While planning with the medical community, we've identified these 5 characteristics that ALL financial plans must contain. If any of these are missing, there is a strong possibility that the plan won't work or at a minimum create huge missed opportunities. At White Coat, we refer to these as the "Essentials of a Financial Plan."
1) Protect Everything! Do it first, do it right
2) Minimum of 3 months salary safe and liquid
3) Save or Invest 20% plus of your income
4) Eliminate ALL high interest debt NOW
5) Mortgage payments ≤ 15% of your income
If you follow these "Essentials" you will have a basic framework of a sound financial plan and you will be on your way to financial success. Sounds easy, right? Not so fast! There is a high level of education required within each of these five steps above.