Savory Institute · Holistic Management

Holistic
Financial
Planning

Plan profit before expenses. Check for context alignment. Build lasting ecological and financial wealth.

Your Holistic Context

Every financial decision flows from here. Vague context produces a plan you won't want to work.

Phase 1
Preliminary Planning
Logjam · Adverse factors · Enterprise profitability · 5-Cut brainstorming · Weak link per enterprise
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Tool
Context Checking Matrix
9 filters for every decision: cause & effect, weak links, sustainability, energy/money source & use, gut feel
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Tool
Gross Profit Analysis
Compare enterprises on a common unit. Rank by overhead contribution. Drop negative-GP enterprises.
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Phase 2
14-Step Plan
Logjam → Profit → Inescapables → Wealth-gen → Weak link → Maintenance → Cash flow → Debt → Assess
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Phase 3
Monitor & Control
Plan vs Actual monthly. Cumulative difference rows. Control sheet deviations. Act on adverse items immediately.
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Core Principles
Two Key Rules
1. Plan profit before planning expenses — profit is a ceiling on cost.
2. Check for context alignment — actions must move toward your holistic context.
Triple bottom line: financial · environmental · social

Preliminary Planning: Taking a Hard Look

Answer these four questions before touching the spreadsheet. The bulk of your planning time is here. Skipping it leads to serious errors on the spreadsheet.

Q1

Is there a logjam?

A logjam blocks all genuine progress toward goals. It commonly involves people in key positions — their attitudes, mindset, or trustworthiness. Logjam-clearing actions receive the highest priority and money is allocated before any other expense. Sometimes it takes an outsider to see it.

Government regulations limiting animal numbers Contractual lock-in to commodity production Inadequate water supply Holistic context created superficially — no ownership Key decision-maker left out of the whole Property too large to manage effectively Ranch too small to be ecologically manageable
Q2

Are other factors adversely affecting the business?

Less urgent than a logjam, but if unaddressed could become one. Look for things reducing overall efficiency and productivity. If a factor has potential to prevent addressing a weak link, treat it as wealth-generating.

No funds for family time / vacations Lack of capital for new enterprise Poor family communication No marketing connections for value-added products Dangerous working environment for children
Q3

Are current enterprises profitable? Have you diversified risk?

Review gross profit per enterprise. Be prepared to drop any not providing positive gross profit. Never commit all resources to one enterprise because it was exceptional last year — diversify.

Optional: Brainstorming New Sources of Income

Every 3–5 years, challenge existing enterprises. Hold brainstorming sessions 6 months before fiscal year end. Use the five-cut process to narrow ideas.

1st Cut Drop ideas conflicting with your quality of life values
2nd Cut Drop patently ridiculous ideas — but be careful, best ideas are often ridiculed first
3rd Cut Rough gross profit analysis — highest income for lowest cost
4th Cut Context checks — energy use, alignment, sustainability, holistic context
5th Cut Detailed gross profit with researched figures — compare against current enterprises
Q4

What is the weak link in each enterprise and how will you address it?

The chain has three links. At any moment one is weakest and limits income. Expenses to address it = wealth-generating, highest planning priority. Run each action through: cause & effect · social/biological weak link · energy/money source & use · sustainability · gut feel.

Resource Conversion
Sunlight → Plant → Product
Land, water, soil, forage
→
Product Conversion
Quality, yield, genetics
Processing, mortality
→
Marketing Conversion
Product → Money
Price, market access, sales

Context Checking Matrix

Run any proposed action through these filters before committing money or labour. Define your objective in one sentence first. Speed is essential — do not agonise over ambiguity in any one check.

Cause & Effect
Does this action address the root cause of the problem, or only a symptom?
Weak Link — Social
Could this action create a weak link between us and those whose support we need — due to prevailing attitudes or beliefs?
Weak Link — Biological
Does this action address the weakest point in the life cycle of the organism or ecosystem involved?
Weak Link — Financial
Does this strengthen the weakest link in the chain of production? (Resource → Product → Money conversion)
Marginal Reaction
Comparing two or more actions: Which provides the greatest return toward the goal per additional unit of time and money?
Gross Profit Analysis
Comparing enterprises: Which enterprises contribute most to covering the fixed costs (overhead) of the business?
Energy/Money — Source
Is the energy or money from the most appropriate source? Solar dollars (from land productivity) vs mineral/petrochemical vs paper dollars?
Energy/Money — Use
Will this use be consumptive (one-time) or cyclical (building infrastructure for future wealth)?
Sustainability
Will this action lead toward or away from the future resource base described in our holistic context?
Gut Feel
How do we feel about this action? Will it lead to the quality of life we desire? Will it adversely affect the lives of others?
Result: —

Gross Profit Analysis

Separate fixed costs from direct / variable costs. Compare enterprises on a common unit. Rank by contribution to overhead. Be prepared to drop any enterprise not providing positive gross profit — it is the combined gross profit of all enterprises that must cover fixed costs.

Fixed Costs (Overhead)

Fixed costs exist whether you produce anything or not — mortgage, land tax, salaries, insurance, depreciation. All enterprises combined must produce enough gross profit to exceed this total.

Total Fixed Costs:0.00
Total Gross Profit (all enterprises):0.00
Projected Net Profit / (Loss):0.00

Putting the Plan on Paper — 14 Steps

Follow these steps in order. Each step builds on the last. The sequence matters — profit is planned before expenses, wealth-generating expenses before maintenance.

Savory recommends up to 50%
Subtract first if carrying big debt
Steps 1–4: Plan Income & Categorise Expenses
1
Plan income and direct expenses per enterprise. Fine-tune figures from your gross profit analysis. Create one income worksheet per enterprise.
2
Plan miscellaneous income. Mineral royalties, savings interest, old vehicle sales, employee loan repayments — anything not tied to a specific enterprise.
3
Categorise expenses as Wealth-Generating (generates income this year or soon) · Inescapable (legally obligated, fixed) · Maintenance (essential but won't grow income).
4
Plan all other (fixed) expenses. Fixed costs not tied to an enterprise. Consider a Depreciation Fund. Note adverse-factor expenses that didn't qualify as wealth-generating.
INCOME
Enterprise / SourceType JanFebMarAprMayJun JulAugSepOctNovDec Total
Total Gross Income
Steps 5–9: Transfer Expenses to Spreadsheet in Priority Order
Gross Income
—
−
Debt Service
—
−
Planned Profit (20%)
—
=
Available for Expenses
—
5
Transfer income figures to the spreadsheet. Create one income column per enterprise plus a miscellaneous column.
6
Allocate funds to the logjam (if any) — the one exception to profit-first, because the business is at risk if a logjam remains unaddressed.
7
Plan the profit. Reduce gross income by up to 50% and set that as your expense ceiling. If carrying big debt, subtract debt payments first, then cut what's left.
8
Transfer inescapable expenses (if any) — unavoidable, non-negotiable.
9
Transfer remaining expenses: wealth-generating first → adverse factors → weak-link per enterprise → enterprise expenses → fixed costs. Use marginal reaction check throughout.
EXPENSES
Expense ItemCategory JanFebMarAprMayJun JulAugSepOctNovDec Total
Total Expenses
Steps 10–11: Bring the Plan into Balance
10
Bring the plan into balance. Start with maintenance expenses — cut anything not absolutely essential. Challenge every expense. Use the marginal reaction check: move dollars from maintenance to wealth-generating wherever they give the highest return. Nothing is sacred.
11
Determine where to invest your profit. Reinvest in wealth-generating expenses? Diversify risk? Hold as emergency liquidity? Bear in mind tax consequences.
Total Gross Income—
Total Expenses—
Planned Profit Reserved—
Balance (should be ≥ 0)—
Steps 12–13: Cash Flow & Debt Analysis
12
Check the cash flow. A positive bottom line doesn't guarantee cash on hand when needed. Calculate monthly surplus/deficit and running bank balance. Income tends to come in later than planned; expenses earlier.
13
Figure debt costs in relation to cash flow. If borrowing is involved, calculate monthly interest. Formula: annual rate % × overdraft ÷ 1,200. By manipulating cash flow you may reduce peak indebtedness.
JanFebMarAprMayJun JulAugSepOctNovDec Total/End
Monthly Surplus/(Deficit)
Running Bank Balance

Overdraft / Loan Interest Calculator

Step 14: Assess the Plan
14a
Is the plan sound when projected forward? Project 2–3 years ahead. Look for any trend toward heavy borrowing. Transfer figures to new worksheets and adjust for known changes.
14b
Is the plan sound from an overall business point of view? Calculate real profit: (closing asset values − opening) + cash excess − allowable depreciation. Have your accountant review at least one month before fiscal year end.
Don't panic. Think, think, think. Plan, plan, plan. Neither make, nor accept, any excuses. The word "can't" must not enter your head.

Monitoring Your Plan to Ensure Profit

Schedule monthly monitoring sessions before your new financial year begins. Enter actual figures before the 10th of each month. Act immediately on adverse deviations. Do something — now.

1
Obtain actual income, expense and inventory figures before the 10th of each month.
2
Enter figures in the "Actual" row. Adverse to plan = red. On or better than plan = blue.
3
Compute the Difference. Never balance a surplus in one column against a deficit in another — control deviations within each category.
4
Record the Cumulative Difference to Date — alerts you when small monthly differences become a serious drift from plan.
PLAN VS ACTUAL — Column Tracker

Add one column per income source or expense category you want to track monthly.

Control Sheet

For major deviations — record cause, proposed action, and who is responsible. Make it a matter of shared concern. The best solutions come from flexible cooperation across the team.

⟳ HFP | Guided Workflow
Reference Tool ↗
HFP
Savory Institute · Holistic Management

Create Your
Holistic
Financial Plan

A guided coaching process that walks you through every decision in the right order — from your deepest values to the figures on paper.

I
Preliminary Planning
Logjam · Adverse factors · Enterprise profitability · Weak links per enterprise
→
II
The 14-Step Plan
Income · Profit ceiling · Expenses in priority order · Cash flow · Assessment
→
III
Monitor & Control
Plan vs Actual · Cumulative differences · Deviation control
⏱ 2–4 hours across multiple sessions
Phase I · Foundation

Your Holistic Context

Every financial decision you will make flows from here. Define it honestly with your whole team. Vague context produces a plan that nobody believes in — or worse, one that actively works against your real goals.

⏱ 30–60 min · Do this with your whole team
💬
Think of yourself as a conductor about to direct a symphony. You are about to exercise that kind of mastery over your own life and a stretch of land. Start by naming everyone whose livelihood and values are part of this operation.
Everyone whose livelihood, values, and decisions shape this operation — family, key staff, partners. Name them so nobody is left out.
What does a genuinely good life look like for everyone named above? Think about family, community, values, creative fulfilment, financial security. This is a shared statement — write it in the first person plural.
Example
"A close family that sustains the land and passes it on healthier than we found it, with enough security to weather hard years, time for community, and children who want to stay."
What does your land and environment need to produce — in behaviour, function, and output — to support that quality of life now and into the future? Describe the landscape and ecosystem you are creating.
Example
"Diverse grassland with high plant density, supporting profitable cattle and wildlife. Functioning water cycle. Soil building year on year. A strong community of buyers who trust our product."
What must your land, water, soil, community, and financial base look like far into the future — in 50 to 500 years? This is your long horizon. It makes the sustainability check real.
Example
"Deeper topsoil. More diverse plant species. Improved water cycle. Stronger local food economy. Children and grandchildren who want to manage this land because it is thriving, not exhausted."
Why this comes first

Ambiguity in your holistic context is dangerous. It lets the plan drift toward goals you don't actually share — and you won't discover that until money is tight and tempers are high. Surface disagreements now. A superficially created holistic context, borrowed from someone else or written in an afternoon without real ownership, will not influence any actions.

Step 1 of 13 · This cannot be skipped
Phase I · Preliminary — Question 1 of 4

Is There a Logjam?

A logjam blocks all genuine progress toward your goals. The logger climbs a hill to see the one log stopping the pile. Remove it and everything flows. In your operation, what is the one thing blocking progress? If there is one, clearing it receives the highest priority of any expense in your plan.

⏱ 30–90 min · May benefit from an outside facilitator
💬
Logjams often involve people in key positions — their attitudes, mindset, trustworthiness. It is difficult to see because you are inside it. Ask yourself honestly: is there anything that, if removed, would unlock everything else?
Common logjams in farming & ranching
Government regulations limiting animal numbers or animal impact
Contractual lock-in to commodity production
Inadequate or unreliable water supply
Holistic context created superficially — no real ownership
A key decision-maker left out of the whole
Property too large to be managed by available people
Ranch too small to be ecologically manageable
No knowledge of viable alternatives to monocropping
The one exception to profit-first

Normally, you plan profit before expenses. But if there is a genuine logjam, the business as a whole is at risk until it is cleared. Fund it first. Everything else — including your profit — comes after.

Step 2 of 13 · Logjam expenses get funded before profit
Phase I · Preliminary — Question 2 of 4

Adverse Factors

Less urgent than a logjam, but if unaddressed these factors quietly drain efficiency and could become a logjam in time. Surface them now, decide which require money, and those that prevent you addressing a weak link become wealth-generating expenses.

⏱ 20–40 min
💬
Think about what is reducing overall efficiency without blocking all progress. Common patterns: not enough time for family, lack of specific skills, infrastructure gaps, communication breakdowns. Be honest — these accumulate.
Common adverse factors
No time or funds allocated for vacations or visiting family
Lack of capital to launch a promising new enterprise
Poor family communication and cohesiveness
No expertise for marketing value-added products
Working environment too dangerous to involve children
Lack of computer or management skills
When an adverse factor becomes wealth-generating

If a factor has potential to prevent you addressing a weak link — or otherwise greatly reduce income — treat it as a wealth-generating expense. Move it to your wealth-generating worksheet and give it priority in the plan.

Step 3 of 13
Phase I · Preliminary — Question 3 of 4

Gross Profit Analysis

Separate what each enterprise actually earns from what it costs to run. The combined gross profit of all enterprises must exceed your total fixed costs. Be prepared to drop any enterprise that fails to deliver a positive gross profit — it is draining the business.

⏱ 1–3 hours · Research costs beforehand
💬
The key distinction: direct costs exist because of this enterprise. Fixed costs exist whether you produce anything or not. Never apportion fixed costs to enterprises — it obscures which ones are really pulling their weight.
Exist whether you produce anything or not — mortgage, land tax, salaries, insurance, depreciation. The combined gross profit of all enterprises must exceed this total.

Every 3–5 years, challenge existing enterprises. Use the five-cut process to narrow ideas from a brainstorm down to a handful worth serious analysis. Hold sessions 6 months before fiscal year end.

1st cutDrop any idea conflicting with your quality of life values
2nd cutDrop the patently ridiculous — but be careful, best ideas are often ridiculed first
3rd cutRough gross profit analysis — highest income for lowest cost
4th cutContext checks — energy use, alignment, sustainability, holistic context
5th cutDetailed gross profit with researched figures — compare against current enterprises
Step 4 of 13 · Diversify risk — never rely on one enterprise for all fixed costs
Phase I · Preliminary — Question 4 of 4

Weak Link per Enterprise

The chain of production has three links. At any moment one is weakest — and that one limits income. Find it for each enterprise. Expenses to strengthen it become wealth-generating and receive high priority in your plan.

⏱ 30–60 min
Link 1
Resource Conversion
Sunlight → Plants → Product
Forage shortfall Too few paddocks Poor soil fertility Acreage too small Poor water management Monoculture cropping
→
Link 2
Product Conversion
Resources → Quality product
Low calving/lambing rate Poor weight gains High mortality Crop disease / damage High harvest loss
→
Link 3
Marketing Conversion
Product → Money
Low prices received Poor presentation Unnecessary middlemen No direct market access
💬
Before recording any action as wealth-generating, run it through these context checks: cause & effect · social / biological weak link · energy/money source & use · sustainability · gut feel. Only actions that pass these checks become wealth-generating expenses.
Step 5 of 13 · Weak-link expenses have priority over maintenance in the plan
Phase II · The Plan — Steps 1–5

Plan Your Income

Enter planned income month by month for each enterprise. Use your gross profit analysis as a starting point and fine-tune here. Add a miscellaneous row for income not tied to a specific enterprise.

⏱ 1–2 hours
💬
Record everything in pencil — you will change these figures repeatedly. Income tends to arrive later than you expect. Expenses arrive earlier. Build that caution into your planning.
Income — Monthly Plan
Enterprise / Source Type JanFebMarAprMayJun JulAugSepOctNovDec Total
Total Gross Income
Step 6 of 13 · Steps 1–5 of the 14-step plan
Phase II · The Plan — Step 7

Plan the Profit First

Set aside up to 50% of gross income as profit before you plan a single expense. This is the discipline that prevents production costs from rising to anticipated income. Profit is not what is left over — it is planned first, and it becomes the ceiling on all expenses.

⏱ 15 min · Requires courage
"Almost anyone can push production up at increased cost. The challenge is to spread the difference between income and costs — and push profit up."
Savory recommends aiming for up to 50%. Many achieve 20–30%. Too small a percentage, and you'll cut too little.
If carrying significant debt, subtract first — then apply the profit percentage to what remains.
Gross Income
—
−
Debt Service
—
−
Profit (20%)
—
=
Available for expenses
—
Reinvest in wealth-generating expenses? Hold as emergency liquidity? Invest elsewhere to diversify risk? Consider tax consequences.
The most common failure pattern

Allowing production costs to rise to optimistically anticipated income. Your suppliers, salespeople and consultants will push for higher yields, heavier calves, maximum gain — not greater profit. Set your limits early and hold to them: "Here is what I have. What can you do within it?"

Step 7 of 13 · The remaining amount is your hard ceiling for all expenses
Phase II · The Plan — Steps 8–9

Plan Expenses — In Priority Order

Transfer expenses to the spreadsheet in this exact sequence. The order encodes the discipline. Every pound moved from maintenance to a wealth-generating expense grows the business to a new level.

⏱ 1–3 hours
Exception
Logjam expenses
If a logjam exists, fund it first — before profit. The business is at risk if it remains.
1st
Planned profit column
This goes in before any expenses. It creates your ceiling.
2nd
Inescapable expenses
Legally or morally obligated — non-negotiable, cannot be delayed.
3rd
Wealth-generating expenses
Adverse factors, weak-link actions, logjam-related costs not already allocated.
Last
Maintenance expenses
Enterprise costs, fixed costs, depreciation fund, drawings. Cut ruthlessly here to fund the priorities above.
Expenses — Monthly Plan
Expense Item Category JanFebMarAprMayJun JulAugSepOctNovDec Total
Total Expenses
Step 8 of 13 · Use marginal reaction check when comparing expenses
Phase II · The Plan — Step 10

Bring the Plan into Balance

If expenses exceed the ceiling, cut maintenance until they don't. Start with the biggest expenses. Nothing is sacred — even routine expenses don't necessarily have to continue. Use the marginal reaction check: move pounds from maintenance to wealth-generating wherever they give the highest return.

⏱ 1–2 hours · Requires tough decisions
💬
The key question at each expense: what is the marginal reaction — what would this pound do if moved to a wealth-generating expense instead? The business grows every time you make that shift without losing effectiveness.
1
List your top 5 maintenance expenses. Challenge every one. Can it be reduced? Deferred a year? Eliminated entirely?
2
Apply the marginal reaction check across all wealth-generating expenses. Some will give a far greater return than others. Be prepared to eliminate wealth-generating expenses if the money does more good elsewhere.
3
Move dollars intentionally. If you reduce the profit percentage to fund a wealth-generating expense, record that decision here — and don't later complain about the lack of profit.
Record decisions here so you can explain them to your team — and revisit them in monitoring.
Step 9 of 13 · Nothing is sacred — even routine expenses don't have to continue
Phase II · The Plan — Steps 12–13

Cash Flow & Debt

A positive annual bottom line does not guarantee cash on hand when you need it. Map the monthly surplus or deficit. Income arrives later than planned. Expenses arrive earlier. Plan for the gaps before they become crises — and calculate the true cost of any borrowing.

⏱ 30–60 min
If you will need to borrow, enter rate to see monthly interest. Formula: rate% × overdraft ÷ 1,200
JanFebMarAprMayJun JulAugSepOctNovDec Year End
Monthly Surplus/(Deficit)
Running Bank Balance
Interest Owed (if overdrawn)
If you find deficits, note what you rescheduled — bulk purchase moved, income brought forward, overdraft facility arranged. As a general rule: income arrives later than planned, expenses earlier than planned.
Step 10 of 13 · Overdraft interest: rate% × overdraft ÷ 1,200
Phase II · The Plan — Step 14

Assess the Plan

Two final checks before the plan is complete. Have your accountant review the plan at least one month before fiscal year end — this creates the opportunity to make final adjustments and arrange purchases with tax timing in mind.

⏱ 30–60 min + accountant review
A
Is the plan sound when projected forward?

Repeat the plan for the next 2–3 years using known changes — remove one-off purchases, rework livestock numbers, adjust for expected market shifts. Look for any trend toward heavy borrowing or declining net worth.

B
Is the plan sound from an overall business point of view?

Real profit = (closing asset values − opening values) + cash excess − allowable depreciation. Include unsold inventory and held-back products. This tells you whether net worth is actually growing.

"Don't panic. Think, think, think. Plan, plan, plan. Neither make, nor accept, any excuses. The word 'can't' must not enter your head."
Step 11 of 13 · If the plan doesn't look good — replan immediately
Phase III · Monitor & Control

Monthly Monitoring

Schedule monthly sessions before the financial year begins. Enter actual figures before the 10th of each month. Act immediately on adverse deviations. Do not let a surplus in one column excuse a deficit in another — control deviations within each category.

⏱ A few hours per month · Ongoing throughout the year
1
Obtain actual income, expense, and inventory figures before the 10th of each month.
2
Enter figures in the Actual row. Adverse to plan = red. On or better than plan = green.
3
Compute the Difference. Control deviations within each category — never let a surplus elsewhere excuse a deficit here.
4
Record the Cumulative Difference to Date. This is how you catch a drift before it becomes a crisis.
Add one column per income source or expense category you want to track. Plan vs Actual vs Difference vs Cumulative.
Step 12 of 13 · Do something — now. Don't wait for perfect accuracy.
Phase III · Monitor & Control

Control Sheet

For major deviations, record the cause, the proposed action, and — most importantly — who is responsible for acting. Make the problem a matter of shared concern. The temptation to assign blame ensures ultimate failure. The best solutions come from cooperative sharing.

⏱ Monthly · After entering actual figures
The right approach to deviations

Serious deviations are the greatest danger to management relations and staff morale. Seek team input. Reward creativity. Delegate authority. Build morale. Every crisis offers an opportunity for staff to show what they can do — and seeking their input builds loyalty as surely as tyranny tears it down.

Devote time in each monitoring session to look forward. Things planned last November for June may need action now to make sure they happen.
Step 13 of 13 · The plan succeeds if you use it every month
Plan Complete

Your Holistic Financial Plan is Ready

You have worked through every phase of the Holistic Financial Planning process. Schedule your first monthly monitoring session now — before the financial year begins.

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