In a previous post about dividend reinvestment plans (DRIPs)
, I noted that my investing career started a little more than a decade ago. At that time, I invested in companies that I knew and with which I was a customer. Over time, I expanded my horizons and bought stock in companies with which I had no relation. Whether it’s luck, insight, or a combination of both, those purchases have helped me beat the S&P 500 over that period. However, I’ve made my investment and financial decisions without a strategy, without a financial plan. So my new year’s financial revolution (sorry, I couldn’t resist) is to develop a comprehensive financial plan.
Over the next several weeks, I’ll discuss the process outlined below and the tools I create for the plan.Step 1: Get organizedStep 2: Assess the situationStep 3: Set goals and objectives
Step 4: Develop a plan
Step 5: Implement the plan
Step 6: Assess and improve
Please feel free to share your thoughts as I go along.