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There's probably no wiser advice when confronting the planning process than to "begin with the end in mind". This is a core mantra of personal and business planning and encapsulates the importance of knowing what you want to achieve or where you want to go. Another benefit of creating this vision is in the working of a plan; it is much easier to continue through the hard parts if you have a clear understanding of what you desire to achieve.
One growing field of planning for the future is in design-thinking. This speaks to more than just finding an optimal path from point A to B, but looks to instil a sense of innovation and creativity into the process. It encourages deep thinking about the objectives or problems at hand and seeks to question assumptions about the way in which we might view any particular context or situation.
Furthermore, design-thinking at its best is human-centred and data-driven. In regard to the former, this means that objectives and problem-solving needs to move beyond a simple analysis of objective facts and towards the more subjective needs and desires of the people impacted by the plans. For the latter, design-thinking does not disregard objective reality, but instead looks to gain as much insight from data as possible in order to better understand the human condition.
Now, when it comes to financial planning, it is often the role of the individual (or financial planner) to gather all the necessary information and to work out how best to achieve the competing financial needs. Financial modelling, including gap assessments, scenario analyses and optimal wealth management, can help the individual or household understand where they are at and what they can do to get to where they want to go. Somewhat simple and straight-forward.
However, applying some design-thinking to this process can result in, perhaps, more human-centred solutions and strategies. Firstly, time should be taken to really understand the financial objectives of the individual and how they relate to underlying goals. Such a process can require the disregard for the 'common' lifestyle and demand a deeper look at hopes, dreams and aspirations. Reframing of gaps and desired outcomes can help to explicate a real and human understanding of what might be achieved through wealth planning.
Looking for solutions can also follow a similar process of disregarding the playbook as individuals and financial planners seek ways to address deeper objectives. For example, there are many ways to plan for retirement, but a deeper understanding of how finances can help reach the desired lifestyle can help provide a course of action that is specific and meaningful.
Building a design-thinking financial plan can require a paradigm shift of the planning process and is not meant to circumvent the important process of modelling one's financial future. On the contrary, an eye on creativity and a focus on real experiences (past and future) can build an additional layer of comprehension into an individual's financial data to ensure that chosen strategies are solving the right problems.
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