The Four A’s of Finances
There is a process to wealth for the non-wealthy and we look to expose this process in this article.
The first step is arranging. Arrange your financial picture that is readable and understandable. You might want to speak with a financial advisor or your tax professional that will work with you to prepare accurate personal financial statements.
The next step is assessing. Once the financial statements are prepared it is now time to assess your financial situation. How much debt are you carrying? What areas are your revenue coming from? What opportunities are there to produce more income or shrink your debt?
The third step is set an aim. After the assessment is done it is now time to create a plan and set a goal. When you set your goals, be sure to work backwards, yes backwards. Look at where you would like to be. Make that your long term goal, three to five years out. Determine the steps you will need to take from where you are now to where you want to be. These will be your mid range goals. What can you do right now (within the next 30 days) to move in that direction? These will be your short range goals.
The fourth step is to administer. Now that there is a plan in place, the plan must be executed. Life is full of obstacles therefore you will need to form a team of people to whom you will be accountable to with regard to administering your aim. It is important that you do something everyday to push you closer towards your aim. It is also important to select people on the accountability team who will be honest with you and those who are not jealous of your progress.