Section I - Lesson 3
Financial Plan - Why You Must Have One
By now I'm sure you've come to understand that becoming wealthy and remaining that way is not very likely to "just happen." You have to have a plan! Even if you expect to inherit money someday, or marry into it, or win the lottery, you need to have a financial plan, because without one you're not likely to stay wealthy very long.
When you operate from a well conceived financial plan, you can determine your destination, and identify the routes you intend to follow to get there, just as you would if you were planning a trip. You can know in advance how much progress you should expect to make in a given amount of time, through use of the financial calculator, and you can gauge how well you're doing.
The vast majority of people in this country, young or otherwise, don't operate from any sort of financial master plan at all. They pretty much fly by the seat of their pants, financially speaking, reacting to events and emergencies as they occur, instead of taking pro-active control of their affairs and making things happen in accordance with their wishes, and in keeping with their timetable.
As a result of this lack of financial planning, the majority of people in this country are not yet wealthy, which tends to tell you something. Don't be one of them. Develop a plan.
Your plan should incorporate the following elements:
A) Pro-active control
B) Two separate accounts
C) Automatic income streams
D) An ideal investment vehicle
E) An ideal timing strategy
F) Automatic reinvestment
In the lessons that follow we'll elaborate on each of these, in turn, and see how they all fit into your well conceived master plan for building wealth.
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