Do you have a financial plan? Is it for 2010? Does it cover a few years?

Once you decide on your priorities and goals and set them to a timeline, it can be an easy exercise to review the plan. It may need some small adjustments but if you’ve put some thought into it, the plan will serve you well for several years.

Here is a framework you can use:

1. Work with the members of your household to determine what you want to achieve, what it costs and assign a priority.
2. Attach a timeline to each goal (i.e. number of months or 1, 2, 3, 5 or 10 years).
3. Do a little research for longer term goals so you can estimate the cost.
4. Break the cost of each goal over the timeline (i.e. repay $20,000 student loan in 3 years = $575 per month).
5. Assess your resources and decide how you will achieve each objective. Will you make monthly payments, use tax refunds, work bonus or work an additional job?
6. Keep track of your progress.
7. Review your plan twice a year and make adjustments as required.

It can be a challenge to manage day to day demands never mind longer term responsibilities. A comprehensive plan allows you to balance immediate financial obligations along with future objectives.