Finance Quick Answers
How can I develop a simple plan for my finances?
Although developing a financial plan may sound intimidating, it doesn’t have to be that difficult. All it takes to help you down the road to financial security are a few simple strategies.
First of all, set 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 your goal. Once you begin saving, match
products to your 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 if your
goals still reflect your priorities and, if so, are you
on track? Are your assets still allocated as you want?
Finally choose your provider. If you don’t need
professional advice, save money by using discount
brokers and no-load mutual funds.
Source: "Five Steps to Your Financial Plan," p. 2, From Here to Security, a consumer education project sponsored by NationsBank and the Consumer Federation of America
Sandra McKinnon, Consumer & Family Economics Specialist, University of Missouri Extension
Cynthia E. Crawford, Ph.D., Consumer & Family Economics Specialist, University of Missouri Extension
Last update: Saturday, July 26, 2008