Ten-Point Financial Plan Audit
Find neglected risks and opportunities across a complete financial life
- Difficulty
- Moderate
- Time to result
- ~weeks to results
- Steps
- 7
- Confidence
- 94%
Audit the financial plan across ten recurring mistake areas discussed by Ben Felix: insufficient earning power, insufficient saving, unclear goals, spending on the wrong things, avoiding compensated investment risk, taking poorly compensated risks, missing tax-planning opportunities, neglecting estate planning, failing to coordinate with a spouse, and underinsuring catastrophic risks. Review each area separately because a strong portfolio cannot compensate for every weakness elsewhere. For each gap, record the consequence, the next action and whether specialist help is needed. The audit is not a product recommendation and several categories are country-specific. Its value is breadth: it turns financial planning from a single question about returns into a recurring check of income, behavior, legal preparation, relationships and resilience.
Origin
Ben Felix presents ten cards covering what he considers common financial mistakes, drawing on financial-planning practice and academic research discussed during the episode.
Core principles
- 01Income capacity belongs in a financial plan
- 02Both too little risk and the wrong risk can damage outcomes
- 03Taxes and estate arrangements reward advance planning
- 04Household compatibility and catastrophic protection affect financial resilience
How to run it
- 1
Audit income and saving
Assess whether earning capacity can be improved through education, skills or entrepreneurship, then whether saving is appropriate for current income and future needs.
Pro tip Review saving rates after material income changes rather than assuming one rate fits every life stage.
Watch out The claim that income can often be increased is not a guarantee for every person or circumstance.
- 2
Clarify goals and spending
Define the life the plan should support, then identify spending that contributes little while displacing more important saving or experiences.
Pro tip Use PERMA categories to prompt a fuller set of goals.
- 3
Audit investment risk
Check both sides: whether excessive caution sacrifices long-run expected return and whether concentrated stocks, options, tokens or costly trading introduce poorly compensated risks.
Pro tip Separate willingness to take risk from the financial capacity to bear it.
Watch out Expected returns are uncertain and market losses can be severe.
- 4
Check tax and estate setup
Review whether available tax-advantaged accounts are being used appropriately and whether a will or estate plan reflects current dependents and wishes.
Pro tip Use qualified local professionals where the rules are country-specific.
Watch out Do not generalize Canadian or US examples to another jurisdiction.
- 5
Coordinate the household
Discuss spending profiles, shared goals and what would happen under separation or death. Document agreed arrangements where appropriate.
Pro tip Address differences before they become recurring conflict.
Watch out Legal agreements should be mutually understood and professionally reviewed.
- 6
Insure catastrophic risks
Estimate the income the household would lose through death or inability to work. Compare that exposure with suitable life and disability coverage.
Pro tip Felix says low-cost term life insurance meets most people's life-insurance need.
Watch out Coverage needs and product suitability are individual and jurisdiction-specific.
- 7
Turn gaps into actions
Rank weaknesses by impact and urgency, assign a next step and revisit the audit periodically. Confirm completed actions rather than merely noting them.
In the wild
A couple finds that their investments are diversified but their will predates their child, one partner lacks income protection and both are leaving tax-advantaged account room unused. They obtain local professional advice and assign deadlines for each gap.
→ The review strengthens areas a portfolio-performance check would have missed.
Common mistakes
Reviewing investments only
Income, spending, taxes, estate plans, relationships and insurance can be as consequential as asset selection.
Applying foreign tax examples
The episode repeatedly notes that tax and estate rules vary by country.
Buying insurance without sizing the risk
The audit begins with the income or dependency exposure that needs protection, not a product pitch.
Is it for you?
Best for
Households conducting a periodic review of their whole financial plan.
Not ideal for
Anyone treating a general checklist as a substitute for country-specific legal, tax or regulated financial advice.
From the transcript
“this is the top 10 financial mistakes that I think people make”
“they should definitely be thinking about are there tax planning opportunities”
“everybody that has any dependents should write a will”
From the episode
Money Expert: Buying A House Is A Mistake! Becoming Rich is Simple But You Won’t Do It!