A good salary does not guarantee personal financial success. People who focus solely on developing their professional careers may not devote enough attention to ensuring their own financial futures. However, it doesn't have to be time-consuming or impossible to fix your personal finances. Start by paying attention to the basics.
| # | Six Financial Steps |
|---|---|
| 1. | Pay Yourself First. Save a set amount of your earnings each month. |
| 2. | Reduce Consumer Debt. Pay off your balance monthly to avoid credit card finance charges. If you must carry a balance, switch your account to a credit card that offers the lowest finance rate available. |
| 3. | Diversify your Investments. It's best to spread your risk across many investments, such as mutual funds, stocks, bonds, and real estate. Additionally, you should have a mix of traditional, conservative savings vehicles, such as annuities and whole life insurance, to offset the risk associated with investments. |
| 4. | Create and Maintain an Estate Plan. Meet with an estate planner to ensure your assets are protected in the future. Prepare your will and have your lawyer review it periodically. Prepare documents such as your power of attorney, living will, and health care proxy. If applicable, create trusts to preserve your assets. |
| 5. | Review your Insurance Needs. Make sure your insurance policies are in sync with your life, health, and disability income needs. |
| 6. | Set Long-Term Financial Goals. Project your needs in the future, and establish goals for the next year, three years and ten years. Evaluate your goals periodically and make adjustments as appropriate. |
Example of Some Long-Term Financial Goals 
Objectives-Estate Planning