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