The B.E. Guide to Easy, No-Nonsense Financial Planning

McIntosh, Claire, Black Enterprise

Yes, it's the "B" word ... and nobody - not even the President or the Congress - likes to deal with it But the reality is that good financial planning always starts with a sound budget. Although it took months of debate for Congress to finally pass President Clinton's economic plan, your financial plan should only take several hours to complete.

Making every dollar count is especially critical for individuals caught in the "triple squeeze generation" - baby boomers. For many of us, the new challenge is trying to keep our retirement nest egg from being squeezed out by the college costs of our children and the long-term care of our aging parents.

That's why a well-thought-out financial plan must be a permanent item on every success-minded professional's agenda. A clearly defined plan delineates your financial goals and determines how you achieve them. Just think of it as a guide to a better life - sort of your very own personal finance treasure map.

Financial planning isn't as mysterious as people make it out to be. A plan outlines where you want to be. That means determining your net worth, deciding on your financial goals and developing a savings and investment program. The power of compound interest means that small sums invested now will add up to larger amounts later. The sooner you get started, the easier reaching those goals will be.

Some people have only a vague sense of what they want to see happen. They'll say, "I want to build my net worth," or "I want to buy a house," or "I want to save for my child's education."

But these aren't goals. They don't have a time frame and a dollar amount. Instead, you …

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Publication information: Article title: The B.E. Guide to Easy, No-Nonsense Financial Planning. Contributors: McIntosh, Claire - Author. Magazine title: Black Enterprise. Volume: 24. Issue: 3 Publication date: October 1993. Page number: 111+. © 2007 Earl G. Graves Publishing Co., Inc. COPYRIGHT 1993 Gale Group.

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