by Michelle Nash

Created on: October 01, 2008   Last Updated: November 28, 2009

Introduction to Financial Planning

An easy guide to securing your financial future

How will I pay for my children's college? I need to save for retirement but where do I start? How will I survive if I lose my job? What is an investment portfolio? Many of us have asked ourselves these questions about our current and future finances. It can seem overwhelming and down right confusing. Rest assured with a little time and patience it isn't such a difficult process. The process may take some effort on your part but it is a worthwhile investment in your future and your family's future to take the time to do it. It isn't as difficult as you may think. These easy steps to getting started will get you on the right track to a secure and comfortable financial future.

What is a Financial Plan?

A *financial plan (www.woodmen.org/inside.cfm) is a structured plan for meeting your current financial needs while outlining a plan for meeting your future financial goals. Now what does all that mean in laymen's terms? A financial plan is your plan for how you will address your family's financial needs for retirement, college, estate planning and saving for unexpected costs such as; medical bills, car repairs, loss of employment and unexpected bills.

How to get started with your financial plan

Now that you know what a financial plan is, how do you get started? First, you will need to begin to consider your short and long term * financial goals (www.womensfinance.com). Consider these questions when determining your goals: Do you want to save for a car in a few months? Are you thinking of buying a home in the next few years? How will you begin to save for your retirement? How will you pay for your kids colleges? How will you take care of your quarterly or yearly tax? Once you have determined your short and long term goals, you need to develop a plan on how to reach those goals.

Determine what you can do now to start achieving these goals. Does your current employer offer a 401k or other matching savings plans? Many savings plans do not require a huge deposit to get started; many banks will allow you to open an interest bearing savings account for as little as $25. You will find that saving as little as $20 a week over the next several years can generate a significant savings for your future goals. The rule of thumb is to pay yourself first.

There may also be other investment options you want to look into for savings as well as generating an income. The most important question you

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