The Three-Year Review and The Three-Year Plan


Reflecting on the past three years and planning for the next three is an insightful and strategic exercise for personal and financial growth. Here’s how you can approach it:

The Three-Year Review

Reflecting on Your Life’s Circumstances:

  1. Career Progression: Assess your professional achievements, changes in roles, and skill development.
  2. Financial Health: Review your savings, investments, debts, and overall financial stability.
  3. Personal Development: Consider your educational attainments, new skills learned, and personal growth.
  4. Relationships: Reflect on the health of your relationships with family, friends, and colleagues.
  5. Health and Well-being: Evaluate your physical and mental health over the past three years.

Top Five Lessons Learned:

  1. Financial Literacy: Understanding the importance of budgeting, saving, and investing.
  2. Adaptability: Learning to adjust financial plans in response to life’s unexpected changes.
  3. Long-term Planning: Recognizing the value of setting and working towards long-term financial goals.
  4. Risk Management: Appreciating the need for insurance and emergency funds.
  5. Mindful Spending: Gaining insights into the difference between wants and needs.

Changing Views on Money and Wealth:

  1. Wealth as a Tool: Seeing money as a means to achieve life goals rather than an end in itself.
  2. Sustainable Growth: Focusing on steady, sustainable financial growth instead of quick gains.
  3. Value of Experiences: Prioritizing spending on experiences that create lasting memories over material possessions.

The Three-Year Plan

Setting Financial Goals:

  1. Emergency Fund: Ensure you have 3-6 months’ worth of living expenses saved.
  2. Debt Reduction: Create a plan to pay down any high-interest debts.
  3. Investment Growth: Increase your contributions to retirement accounts and other investment vehicles.
  4. Education and Skills: Invest in further education or skills that can enhance your career prospects.
  5. Health and Wellness: Allocate resources towards maintaining or improving your health.

Achieving Financial Goals Efficiently:

  1. Budgeting: Create a detailed budget that aligns with your financial goals.
  2. Automated Savings: Set up automatic transfers to savings and investment accounts.
  3. Continual Learning: Stay informed about financial management and investment strategies.
  4. Professional Advice: Consider consulting with a financial advisor for personalized guidance.
  5. Regular Review: Schedule quarterly reviews of your financial plan to track progress and make adjustments.

Key Takeaways

  1. Recognize Achievements: Regularly reflect on your accomplishments to stay motivated and aware of your progress.
  2. Set Realistic Goals: Focus on incremental changes that lead to long-term success rather than immediate fixes.
  3. Three-Year Perspective: Use a three-year horizon for setting and reviewing goals to balance detail and long-term vision.

Actions to Consider

  • Journal Your Progress: Maintain a journal to document your achievements, challenges, and learnings.
  • Share Your Journey: Impart the lessons learned to loved ones, fostering a legacy of financial wisdom.
  • Celebrate Milestones: Acknowledge and celebrate when you reach incremental benchmarks.

By adopting this three-year review and planning approach, you can create a roadmap for continual improvement and sustained financial health. This process encourages you to make thoughtful, informed decisions that contribute to a fulfilling and secure future.