Personal Finance 101: From Saving and Investing to Taxes and Loans, an Essential Primer on Personal Finance by Alfred Mill

Chapter 1
 Your Financial Road Map
 The first, and most basic, part of getting your finances
 under control is setting your goals and taking stock of what
 you have. Once you’ve done that, you’re in a position to
 move forward and maximize your financial gains. But first
 things first!

SETTING FINANCIAL GOALS
 What You Want to Achieve
 All successful organizations have short- and long-term
 goals and a written plan for reaching them. If you want to
 be financially successful, you should have your own goals
 and plans. The first steps are to determine your financial
 status today and then decide what you want to achieve for
 your future and how you’re going to accomplish it.
 WHY FINANCIAL GOALS ARE
 IMPORTANT
 You wouldn’t start out on a long trip into unfamiliar
 territory without a road map, yet many people go through
 life without a concrete plan for their financial future. In
 fact, most people spend more time planning a single
 vacation than they spend on financial planning. The road
 you take to financial freedom can lead directly to your
 destination or to a dead end. Specific financial goals and
 written plans for meeting them help you focus your efforts
 on the end result.
 Start Early
 Starting to save and invest when you’re young is a huge
 advantage. If you invest $5,000 one time at the age of
 twenty, and that investment earns an average 7 percent
 interest per year, at retirement (age seventy) you will have

Personal Finance 101: From Saving and Investing to Taxes and Loans, an Essential Primer on Personal Finance by Alfred Mill