It's okay. Not everyone has their own financial plan. The government has accepted this and would previously provide a pension. Once you reached a certain age you could retire and receive an ongoing income until the day you died. They have since reneged on this financial plan and began encouraging us to invest in our own superannuation. Now it's compulsory. Why? Because many of us travel through this lifetime (our one and only mind you!) with very little direction.

How do you create a personal financial plan? Permit me to share a couple of points;

1. Ask yourself the question, "Where do I want to be in 5, 10, 20 or 50 years from now?" When you can clearly see a picture of the destination it's much easier to plot a course to get there. What income would you like to be earning? What time do you want to get out of bed in the morning - or afternoon? Which tourist destinations would you like to have travelled to and enjoyed? Would you like to give money away to those who are in dire need or at least support your kids and give them some financial freedoms?
2. Write your vision down and keep it before you. If you only ever set the destination once and never return to the guiding road map it will become just a faded memory. Remind yourself often as to where you are heading.
3. Break it down into bite sizes. The age old "How do you eat an elephant? - one bit at a time," is very true. If you're just planning your personal financial goals 5 years out then consider what it is that's needed to get there. I can guarantee it will be a change in direction or at the very least a change in the way you've been driving your life so far.

   Does this new financial plan require increased income from other sources? What level of risk am I willing to accept? Am I prepared to work harder for a set period of time to ensure that my personal plan will be met? Do I need to delay having children for a couple of years? These are all questions that need to be worked out carefully because they will set the backbone of your financial plan.
   



4. Start making the changes It's no good making the plans if you're not prepared to start working on them. This is where most people come unstuck and their dreams are never fulfilled. Anybody can do the first 3 points. People who realise their dreams are the ones that begin to implement this one. This is the key! You've planned your path now it's time to tread it.
   


5. Stick to your plan. This is the next hairy pitfall. If we were to break down into percentages how people act on these points we could assume that 50% only do the first 3. Another 40% continue with point 4 leaving 10% to reach their destination because they stuck with point 5.

   It is so easy to deviate from your plan once you start moving. A couple of years into a 10 year plan and things don't appear to be going the way you thought they would makes it easy to begin doubting that you made the right financial plan.

   I'm not saying don't tweak it from time to time. If you believe that a certain path can get you to your destination faster, or easier (this one I usually doubt) then alter your plan accordingly. But, never throw it out and try to start again. Keep working your plan until you reach your goal.