This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Six Steps to Securing Your Financial Future

What are your financial goals?

If you are like most people, you may have a general idea of what you'd like to achieve financially in life, but you haven't taken the time to map a plan to achieve it. If you don't have specific goals, it's going to be quite difficult.

Here are several steps to putting in motion a sound financial plan:

1. Write it down: The first step is to identify and write down your financial goals so you know exactly what they are. Here are some examples of possible goals:

  • Eliminate credit card debt.
  • Pay off student loans.
  • Build a college education fund for your child.
  • Purchase a house.
  • Build a retirement fund.
  • Create $1 million net worth.
  • 2. Set parameters: Once you have identified and written down your financial goals, you need to define a time frame in which to achieve each one. By setting times, you put in place a motivating factor to move toward each goal at a set pace and avoid delays. For example, if one of your financial goals is to eliminate credit card debt, you might strive to pay it off over three years. In addition, you need to define the specific monetary amount for each goal. In the case of credit card debt, it is not simply the existing balance. You must also factor in interest that will accumulate until the debt can be paid off.

    3. Write a detailed plan: Now that you have specific goals and defined parameters, the next step is to make a step-by-step map of how you're going to reach those goals.

    For your credit card debt, you can choose one of two snowball debt reduction methods . Once you have the plan in place, you'll also need to figure out how you are going to pay down the debt. If you have $5,000 in credit card debt that you want to pay off in three years, you must set aside just over $4.50 a day. Add in the interest payments and you might need $5 a day to reach this goal.

    1 of 2

    Select the service that is right for you!

    COMPARE ALL SERVICES
    Action Alerts PLUS
    Try it NOW

    Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

    Product Features:
    • $2.5+ million portfolio
    • Large-cap and dividend focus
    • Intraday trade alerts from Cramer
    • Weekly roundups
    TheStreet Quant Ratings
    Try it NOW
    Only $49.95/yr

    Access the tool that DOMINATES the Russell 2000 and the S&P 500.

    Product Features:
    • Buy, hold, or sell recommendations for over 4,300 stocks
    • Unlimited research reports on your favorite stocks
    • A custom stock screener
    • Upgrade/downgrade alerts
    Stocks Under $10
    Try it NOW

    David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

    Product Features:
    • Model portfolio
    • Stocks trading below $10
    • Intraday trade alerts
    • Weekly roundups
    Dividend Stock Advisor
    Try it NOW

    Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

    Product Features:
    • Diversified model portfolio of dividend stocks
    • Alerts when market news affect the portfolio
    • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
    Real Money Pro
    Try it NOW

    All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

    Product Features:
    • Real Money + Doug Kass Plus 15 more Wall Street Pros
    • Intraday commentary & news
    • Ultra-actionable trading ideas
    Options Profits
    Try it NOW

    Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

    Product Features:
    • 100+ monthly options trading ideas
    • Actionable options commentary & news
    • Real-time trading community
    • Options TV
    To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
    Submit an article to us!

    Markets

    DOW 17,828.24 +0.49 0.00%
    S&P 500 2,067.56 -5.27 -0.25%
    NASDAQ 4,791.63 +4.3130 0.09%

    Brokerage Partners

    Rates from Bankrate.com

    • Mortgage
    • Credit Cards
    • Auto

    Free Newsletters from TheStreet

    My Subscriptions:

    After the Bell

    Before the Bell

    Booyah! Newsletter

    Midday Bell

    TheStreet Top 10 Stories

    Winners & Losers

    Register for Newsletters
    Top Rated Stocks Top Rated Funds Top Rated ETFs