Financial Planning Through the Lens of SOSTAC®

When we think of planning, whether it’s for a marketing campaign or our future financial wellbeing, a structured approach makes all the difference. One such method, widely used in strategic marketing, is the SOSTAC® planning model—developed by PR Smith—which stands for Situation, Objectives, Strategy, Tactics, Action, and Control. While traditionally used in business and marketing, it’s remarkably well-suited to financial planning too.

In fact, if you’re serious about creating a meaningful, achievable financial plan, thinking like a strategist can help. Here’s how the financial planning journey aligns beautifully with the SOSTAC® framework:

1. Situation Analysis: Where are you now?

Every good financial plan starts with understanding your current position.

In financial planning, this is the equivalent of a full fact find. We assess:

• Your income and expenditure
• Your assets and liabilities
• Existing pensions, savings, and investments
• Protection policies
• Business interests (if applicable)
• Your attitude to risk and capacity for loss

This is your financial baseline. Just like in business, if you don’t know where you are, it’s impossible to decide where you want to go or how to get there.

2. Objectives: Where do you want to be?

This step is about setting financial goals.

In SOSTAC®, objectives should be SMART (Specific, Measurable, Achievable, Relevant, and Time-bound). Financial planning follows the same principle. Your goals might include:

• Retiring at age 60 with a certain income
• Paying off your mortgage in 10 years
• Funding school or university fees
• Building an emergency fund
• Growing wealth in a tax-efficient manner

The clearer the objectives, the better the plan.

3. Strategy: How will you get there?

This is the big picture plan—how we move from your current situation to your desired future.

In financial planning, your strategy will depend on your goals, risk profile, and timeframes. It might include:

• Prioritising short-, medium-, and long-term goals
• Deciding how much to save or invest regularly
• Using pensions, ISAs, or investment accounts
• Planning for tax efficiency
• Ensuring your assets are protected through appropriate insurance or estate planning

The strategy sets the direction, without diving into the nitty-gritty just yet.

4. Tactics: What tools will you use?

Now we get into the specific financial products and solutions that will implement your strategy.

For example:

• Using a Stocks & Shares ISA to grow wealth tax-efficiently
• Consolidating old pensions into a more suitable modern platform
• Taking out life insurance or critical illness cover
• Making regular contributions to a personal pension
• Creating a will and a power of attorney

These are the tactical building blocks that bring your financial strategy to life.

5. Action: What needs to happen and when?

This is about execution—setting timelines, assigning responsibilities (perhaps between you and your adviser), and making sure things actually happen.

Typical actions might include:

• Setting up new investment accounts
• Cancelling outdated or duplicate policies
• Booking a meeting with your accountant or solicitor
• Automating monthly savings
• Reviewing and signing off on your financial plan

The financial plan becomes a living, breathing document, not something that gathers dust in a drawer.

6. Control: How will you monitor progress?

Regular reviews are essential. Just as a business reviews its strategy quarterly or annually, your financial plan needs check-ins too.

Control involves:

• Tracking whether you’re on target with your goals
• Monitoring investment performance and market changes
• Adjusting your plan if your situation or goals change
• Staying on top of tax rules and allowances
• Keeping documents and records up to date

Life changes—and your financial plan should flex with it.

Final Thoughts

Thinking about financial planning in the same way businesses think about strategy—through models like SOSTAC®—can make the process feel more structured, empowering, and effective. It’s not about spreadsheets and jargon; it’s about taking a strategic, step-by-step approach to achieving the life you want.

Whether you’re just starting your financial journey or you’re ready to refine your strategy, applying the SOSTAC® method might give you the clarity and confidence you’ve been looking for.