Building Your Financial Plan

In the previous chapter we learned the incredible wealth building power of compound interest. We learned the principals of time and consistency and the critical concept of paying yourself first. We learned to protect ourselves and our assets with insurance. We learned to work on a cash basis and to avoid debt. We now need to take these principles and apply them to a plan so that you can obtain financial peace and freedom.

As we explored earlier, when you have a plan, break it down into steps and work it in a systematic way—anything can be achieved. The following are well-recognized steps for building the foundation of a solid financial plan. In our plan, there are nine steps. The first six are the steps that you will likely be focusing on in the near term. You may focus on the last three steps more in the future, but the future will come sooner than you think . . .