What Is a Financial Plan? Why Do I Need It?
A financial plan is a summary of all expected expenses and income over a period of time. Having a financial plan allows you to see your future net wealth and compare your financial performance against it.
How It Works
You start by creating a list of all monthly expenses and income payments. Once you do that, these payments are recorded for every month in your plan. You can make adjustments for particular months when there is an expectation of a financial event (e.g. you are planning a trip).
It is also perfectly reasonable to make adjustments on the go in the first few months, especially when it is your first plan. In the end, you will be able to look back at the plan and tell yourself how well you performed and what can you do better to improve your financial position.
What Is the Difference Between Reports, Budgets and Plans?
Reports are mostly about the past. They provide you information about your spending/income that has already happened. Budgets are about the present, they are used to monitor and control variable expenses (e.g. restaurants, entertainment). Plans are about the future, they allow you to see your future net wealth and make long term decisions about your spending.
Accounts that have "Exclude from net wealth" option enabled are excluded from financial plans. Similarly, accounts that were shared with you by someone else are also excluded.
Plans require iOS 13 and macOS 10.15. You need to be running Debit & Credit version 4.0 or higher.