Putting Your Plan into Action

While coming up with your financial plan may seem difficult, the harder part for some people is actually putting that plan into action. You'll probably have to make changes in the way you live now, whether that means saving more, opening new investment accounts, or both.

You might consider creating a separate savings or investment account for each major goal. You'll also need an electronic or paper file where you keep all account statements as well as your own paperwork and plans. It's also a good idea to find out if your employer or bank can automatically transfer a predetermined dollar amount or percentage of your earnings into different accounts from each paycheck. That makes saving easier, and you won't be tempted to spend money you had intended to dedicate to your goals.

Not planning is a bad plan

If you're feeling reluctant about putting your plan into action, it might help if you realize that you have a financial plan whether you like it or not. If you spend all your money — or stuff it under your mattress — you're making financial decisions by default. But you're almost certain not to reach your financial goals that way.