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How come some people make lots of money, others basically maintain the status quo, and many are awash in debt? What makes the difference? Spending habits – the difference between needs, wants, and self-indulgence. Investing practices –how time and compound interest can create a fortune. Spending without planning is seeking instant self-gratification NOW. Over-spending creates a bondage that limits opportunities. We all have dreams, priorities, fears, and limited time. In large part these are the key factors that influence what we do with our money. After all, the money we have at the moment is limited. The key questions are: What are the things that are important to you now, five years from now, in 25 years, etc. How much money do you have at the moment that is beyond the basics? What are your best investment choices based upon your age and the time available?

Financial Planning Definition
The process of: managing your money and resources to achieve economic and personal satisfaction.

The Financial Planning Process.
Determining your current financial situation. What is your income, expenses, and debt? Developing your financial goals. What are your future plans for housing, transportation, medical, marriage, retirement, etc. Identifying courses of action.

Evaluating each course of action. Every decision closes off other alternatives. Creating and implementing your financial action plan. Write it down. Continually review your plan and revise as necessary.

Selecting Financial Goals
Should contain time goals
Short term goals of a week, month, six months, a year or two years. Medium term goals that may be achieved within five years.
Long term goals such financing college for children, retirement plans, Should contain need goals
Consumable product goals: food, clothing, entertainment, etc. Durable product goals: cars, furniture, appliances, sporting equipment, etc. Intangible purchase goals: health, education,...
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