- Figure your net worth
- Estimate your income and expenses.
- Review your personal debts.
- Balance your income and expenses.
- Identify your short-term goals (build an emergency fund, pay off a debt, buy a car).
- Identify your long term goals (buy a home, pay for a college education, save for retirement).
- Determine what you have to save to reach your goals.
- Implement your plan.
You need to review your plan from time-to-time to determine whether you are still on track.