Pre-writing

I've been doing a lot of reading about outlining lately, and the more I read, the more intimidated I feel. I have no idea where the first, second, and whatever plot points fall in my stories, nor am I aware of the pinch points. I'm not all that sure I understand what "pinch points" are. I'm expected to do all this and write character bios before I put one single word of my story on paper (or whatever medium I prefer to use). One site said the pre-writing process should take months. Months! I don't know how, following that method, I could get anything written. I think I know now why I do so much better with the 500 word stories. I can keep the structure in my head.

Is there anyone else who goes through the trouble of character bios, writing down all the plot points, pinch points and so on? If so, how long does it normally take you to do?