Developing a Financial Strategy The prospect of developing and
adhering to a financial strategy can be overwhelming. However,
it does not have to be so complicated. Consider taking the
following three steps: - Measure your current financial status.
- Identify your financial objectives. - Identify the steps to
get you there. Measuring your current financial status can be
accomplished by preparing a personal balance sheet. Identifying
your financial objectives is simple. Most people indicate that
retirement security, funding children's education, increasing
current income, reducing taxes and passing accumulated wealth to
their families at death are their primary financial objectives.
Quantifying what it will take to reach those objectives can be
more complex. Here are some points to include in your financial
strategy. Understand how you spend your money. Prepare a
household spending worksheet. It will enable you prioritize your
spending and identify areas of potential saving. Borrowing can
enable you to obtain