Most Americans spend most of their lives earning money, but they rarely spend any time planning how to use their accumulated capital efficiently. When they reach age sixty-five most people are flat broke. Income from Social Security is inadequate to support people at today s rate of payment, and few observers can predict the future of Social Security.
Financial planning is both a process and an attitude.
It should become a habit. Financial planning involves gathering all your financial and emotional data, analyze these data, and preparing a financial plan for the future. You must take action and follow the plan. Finally, you need to review the plan and make necessary changes as your environment and financial conditions change. The first step is to determine where you are now by preparing a balance sheet in order to determine your net worth.