Ten steps to preparing your own financial plan

1. Gather all the necessary information for assessing your financial situation. This includes: all applicable insurance policies (life, disability, homeowners and auto), tax returns for at least the last three years, investment and savings confirmation statements, pension information, employee benefit booklet, copies of your will(s), power of attorney and living will(s) (keep originals in a safe place), and last two paycheck stubs. If you are self-employed, you will also need business balance sheets and cash flow statements.
2. Determine your current situation by computing net worth, determining monthly cash flow and analyzing current insurance protection.
3. Set specific financial goals for you and your family, and stick to them.
4. Fund your savings accounts first -- "pay yourself first."
5. Fund an "I quit" account with at least three months' living expenses.
6. Update your will and estate plan.
7. Stay informed of recent changes in the tax laws -- it could save you money in the long-run.
8. Budget carefully -- you can reach your financial goals more quickly.
9. Invest with a professional advisor.
10. Be patient and optimistic -- know that you won't get rich overnight but over an extended period of time.

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