THE GOAL OF PERSONAL FINANCIAL PLANNING

TO HELP ACCUMULATE MORE MONEY TO SPEND FOR WHATEVER YOUR PRIORITIES MIGHT BE:

• Early Retirement
• College Education
• Major Purchases
• Increased living standard

STEP ONE: LOOK FOR WAYS TO INCREASE YOUR INCOME

• Invest in education, training, and personal development to increase your earning power.
• Consider alternatives that may increase returns on invested assets.

STEP TWO: LOOK FOR WAYS TO DECREASE OUTGO

• Reduce discretionary spending.
• Restructure debt to lower interest rates.
• Adopt methods to reduce taxes.
• Adopt methods to reduce insurance costs.

STEP THREE: PROTECT AGAINST CATASTROPHIC LOSS

• Insure your income against loss due to death or disability.
• Insure your property against loss due to fire, theft,storms, or accidents.
• Insure against liability losses due to negligence or error.

STEP FOUR: PLAN AHEAD FOR MAJOR PURCHASES

• Borrow only to purchase items of lasting value such as a home, auto, or college education.
• Save up and pay cash for general living expenses, such as vacations, clothing, gifts and entertainment.

STEP FIVE: ESTABLISH A DISCIPLINED PROGRAM TO PRUDENTLY INVEST YOUR REMAINING SURPLUS

• Establish both short term savings and long-term investments.
• Diversify and properly allocate according to your risk propensity.

Disclaimer: While these steps alone cannot guarantee financial success, they may be helpful in developing a sound financial strategy.