1.
You and your spouse or significant other should agree what your goals are, how decisions will be made and who will be responsible for maintaining the financial statements for the household.
If you employ outside help such as a Certified Financial Planner(TM), accountant, insurance agent and lawyer, make sure you understand how they will be paid and what services they provide.
2.
Gather all of your data.
A tax return is a good start for that.
Line by line you can gather data for your income, investments, and expenses.
Review the time frame for your goals and understand the risk levels that you are taking in order to achieve your goals.
3.
Analyze your current situation such as- are you saving enough, are your taxes too high, etc.
Evaluate what your needs are such as getting a trust, starting a college fund, etc.
4.
Develop alternatives to meet your goals.
If you don't have enough to fund a four year college, think of how much in loans you would need to make up the difference.
The same is true with retirement.
Your alternative to not meeting your retirement goal may be to work another five years.
5.
Make decisions on a quarterly basis.
Each quarter or at least annually, review what has been done in the past.
Celebrate your successes and learn from your failures.
There are no guarantees in life or financial plans, so be gentle with yourselves but also stay the course.
6.
Don't be afraid to go off course.
A financial plan should be flexible.
If your situation changes such as a death in the family or a job loss, change your plan accordingly.
But keep your eye on the target.
You can prepare today for your future with a financial plan.
Wealth building doesn't happen from working; it happens from your money working for you.
Whether you do it yourself or have a professional help you, a financial plan is an essential tool for wealth.
You don't need a lot of money.
Your time, your savings and your financial plan will equate to a increased net worth that can fund the lifestyle you desire.