| You are in control | | | | contracts, wills, mortgages, deeds, titles, pay stubs, |
| You are already your own financial planner. | | | | employee benefit statements, banking (loan, savings |
| Regardless of the extent of help you receive from | | | | and checking), bills, investment and retirement plan |
| professionals, you ultimately are the decision maker | | | | statements and any other important papers. |
| and you are responsible for your own finances. | | | | Step 4: Manage Cash Flow |
| Although the financial world has become increasingly | | | | Your household is a business. You need to know how |
| complex, it is becoming easier today to do a lot of | | | | much you are earning and spending each month. |
| your own planning. The variety of resources has | | | | Balance your checkbook and establish a budget. |
| expanded such as software for money management | | | | There are dozens of books and software to help with |
| and planning; online tools for banking, financial planning | | | | this, and your bank's website may provide this as well. |
| and investing, and resources, and books and blogs that | | | | This will help you know when and where you are |
| are easy to understand. These resources may be | | | | overspending. |
| good news for you if the cost of professional fee only | | | | Step 5: Self Educate |
| financial planners is out-of-reach to you. Besides the | | | | Establish a sound foundational knowledge base about |
| cost of fees, others may avoid planners because they | | | | financial matters. Start with books about budgeting and |
| have heard stories of advisors trying to sell a product | | | | money savings tips, debt, basic insurance and investing. |
| that didn't fit their situation. Cost savings and avoiding | | | | Be sure to include reading about mutual funds and |
| product pitches are excellent benefits of being your | | | | financial planning. Avoid get-rich-quick, real estate, gold |
| own planner. | | | | or innovative 'secrets' books. Stick to the fundamentals. |
| Everyone should take a more active role in their | | | | I find the "For Dummies, For Idiots' and D-Mystified' |
| financial affairs. Not only does it help with educated | | | | book series to be very helpful for many people. Lastly, |
| decision making and fraud avoidance it also helps you | | | | stay informed about current financial topics by reading |
| better communicate with your other professional | | | | financial magazines, newspapers, the business section |
| advisors such as your accountant and attorney. You | | | | of papers, and blogs. |
| will also find yourself spotting opportunities when they | | | | Step 6: Create a Written Plan |
| cross your path. | | | | A written plan serves as a road map towards your |
| Becoming a better manager of your family's finances | | | | financial destination. It helps you understand where you |
| will also help you dig out' if you are struggling financially. | | | | are presently and the steps that you need to take to |
| When you consider the low savings rates and the high | | | | move forward. A financial plan is a process. Your life |
| household debt, many more people find themselves in | | | | will change, therefore you should revisit your financial |
| this category today. | | | | plan at least once a year to make any updates or to |
| The following are 7 steps to do-it-yourself financial | | | | include items in your checklist for completion. You |
| planning: | | | | should revisit your financial plan at least once a year to |
| Step 1: Commit | | | | make any updates or to include items in your checklist |
| The first step to financial planning always begins with | | | | for completion. If you write your own financial plan, you |
| commitment. Whether you are having financial difficulty, | | | | will have to obtain financial planning software. Your |
| or have just avoided setting goals and mapping out a | | | | other options are to pay to have a written financial |
| plan - commitment is the first step. Commitment | | | | plan completed by a fee financial planner or by an |
| provides the discipline and focus needed to help | | | | institution or professional that provides products. Be |
| sustain you on the path towards your goals. | | | | sure to find out about how the planner is compensated |
| Step 2: Set Goals | | | | and what your fees will be. |
| Without specific goals and a plan to achieve them | | | | Step 7: Engage Professionals |
| financial success stays a foggy dream. Therefore the | | | | Most people can't entirely do all of their financial |
| second step is to list the dreams that will motivate you. | | | | planning by themselves. Assemble a team of trusted |
| Write down all of the goals you want to achieve in the | | | | professional advisors that you can rely on to help you |
| short and long term. This will serve as the driver, or the | | | | implement different aspects of your plan, answer your |
| fire in the engine giving you the motivation to move | | | | questions and be on the lookout for you. The |
| forward. Everyone has dreams, but without constant | | | | professionals that can be the most advantageous are |
| watering and attention dreams will go dormant. Leave | | | | a proactive tax accountant and financial advisor with |
| your past mistakes and inaction behind you, light a new | | | | extensive planning, investment and insurance |
| fire and chart a course forward. You have an | | | | knowledge, an attorney qualified in estate planning, and |
| enormous amount of potential and talent, and if you | | | | a banker that can help with credit ratings and debt |
| have made mistakes you now have more experience | | | | management. Before committing to anyone, get |
| and wisdom. Dare to imagine what you could achieve | | | | referrals for trusted professionals from people whose |
| because your best years are ahead of you. | | | | opinion you respect and don't be afraid to ask |
| Step 3: Assemble and Organize Information | | | | challenging questions. |
| Get your stuff together. Planning is easier if you | | | | There you have it, the seven keys to do-it-yourself |
| assemble everything in one central location. Make an | | | | financial planning. Start the process today: the sooner |
| organized filing system either in a cabinet, accordion file, | | | | you do, the closer you will be achieving your goals and |
| a box, any way that works for you. Now locate and | | | | living with less financial stress. |
| file all of your tax returns, receipts, insurance policies, | | | | |