Financial planning is the process of selecting and applying the strategies to reach specific financial goals. It places a web of order across what is, for most people, a chaotic financial life. Generally, the simple task of getting organized accomplishes much of the plan.

Financial planning is unique because of the long-time horizons considered. Financial independence, being able to retire and still live comfortably, is an important goal for many people. This is an example of a goal that is sometimes may years in the future. Because people and their circumstances grow and change over the years, a financial plan must grow and change in order to remain effective.

Financial planning is a process that turns back upon itself. To plan, you perform four basic steps:

For the plan to work, as soon as you complete one step you begin another. Think of the plan as a wheel. As the wheel rolls, the plan moves forward.

Because of the ongoing nature of the planning process, it is not something someone else does for you or to you. Your financial planner can give you direction, ideas and insights. You are still the axle that turns the wheel. If you do not make it turn, you will not move forward.

Planning for your future is not an easy task. Clearly it requires some time and a lot of discipline. More importantly, it requires a strong desire to take charge of your financial life - to get it under control once for all and keep it there.

If you are married, this is not a task you pass on to your spouse. It requires a joint effort. Both of you must be actively involved to make your money work for you, not against you. You must work as a team and if you do the rewards will be great. Decisions about spending will be made more consistently. You will know where you are, financially, at all times. You will talk about money often and comfortably. You will realize more of your goals, and you will have the peace of mind that comes with responsible money management.