Now that we've learned the basics, here is a checklist to help guide you along the path to Wealth Creation…
Since we have a new-found focus on our resources that we are accountable for, as well as our need to optimize and grow them, we'll document what we've got, where we're going, and how we're going to get there. When we're done, we'll know how 'healthy' we are, and we'll have a PLAN to monitor our progress!
Remember, a GOAL without a PLAN is nothing more than a DREAM! Let's Make It Happen and Take Charge!
Ready, Set, Go!
Where Are You Now?
First think we've got to do is determine your current financial health. Two things help us with this
- Balance Sheet – Tells us what our current Net Worth is (the value of the assets we have after all our debts are deducted). Fill this out once a year – I do mine on January 1.
- Income Statement – gives us an idea of how healthy our general financial life is, and build upon to determine our goals. Should also be done once per year.
Where Are You Going?
Now it's time to see where we're at daily. Begin with a critical assessment – keep it simple!
- One Month Spending Analysis – Is usually quite eye opening, and finds us some FREE MONEY we can SOW
- Financial Plan– Keep it simple or it won't work! It's not a budget – it's a Financial Plan!
Automate Your Financial Life
Make it Simple – You want to spend the bulk of your time executing your goals, not managing 'bills'!
- The Basics of Automation – Make it simple
Confirm Your Plan
Here we go – the Fun Part
- Our "Free Money" – Remember – A Penney Saved is FREE MONEY. Don't forget to SAVE what you SAVE!
- The ULTIMATE Stock Market Model –
- Our Personal Business –
- Real Estate –
- The Plan Documented –
Now – take that documented plan and sign it, and post it in a conspicuous place where you can refer to it regularly. Don't forget to update your status and adjust the plan as needed.
Great Job! CONGRATULATIONS!