The document outlines the 4 main steps of financial planning: 1. Determine your current financial situation by calculating your net worth and analyzing cash flow 2. Set financial goals both short, medium, and long-term which include paying off debt, saving for retirement and children's education 3. Develop a financial plan that is flexible, provides liquidity, and minimizes taxes 4. Monitor your progress towards goals by regularly reviewing your budget, investment returns, taxes, inflation, and making adjustments if needed.

1. Financial Planning

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3. Step 1: Determine Where You Are Financially Step 2: Set Goals Step 3: Develop A Plan Step 4: Monitor Your Progress Financial Planning STEPS

5. Calculating Your Net Worth Net worth = what’s left after you subtract your liabilities from your assets

13. Flexibility You need a plan that's flexible enough to change with your circumstances throughout the major and minor life events you experience.

14. Liquidity Most financial advisors recommend that you have funds available that are equivalent to 3 to 6 months of your expenses. Appropriate locations for these funds are checking, savings, and money market accounts.

15. Minimization of Taxes Minimizing taxes must serve as a means to meet your objectives; it isn't an end in itself. An effective plan will minimize both income taxes and estate taxes.

18. Source : Ernst & Young’s Personal Financial Planning Guide