Although developing a financial plan may sound intimidating, it doesn’t have to be that difficult. All it takes to help you down the path to financial security are a few simple strategies.
First, set some financial goals. Whatever you are saving for, figure out what it’s likely to cost and how many years you have to build up your funds.
Next, start saving and get started on funding your goal. Once you begin saving, match investment products to your goals. For example, money market funds for short-term goals and stocks for long-term goals. Do some investigating to find the best ways to save and invest for each of your goals. Annually check up on your progress. Ask yourself whether your goals still reflect your priorities and, if so, whether you are on track for having the money you need when you need it. Are your assets still allocated as you want?
Finally, consider getting some help from financial services professionals. If you don’t need professional advice, save money on investment purchases by using discount brokers and no-load mutual funds. Some companies offer direct investments without a broker when you participate in their dividend reinvestment plan.
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