Too many people keep their financial plans on a monthly basis. When retirement starts to approach or disaster hits, they realize that they did not plan sufficiently for the future. Financial planning is an important task for everyone, not just millionaires and high-earning professionals. Anyone can set financial goals and work towards them with the right information. The following steps are a blueprint to work towards your financial objectives. 

Set Financial Goals 

Setting financial goals is the first step towards building wealth. It involves a frank look at your needs, income, debts and plans. Start by making a list of things that you want and divide it into categories by time. For example, you might want to take a big vacation next year, buy a new home in the next five years and retire in 20 years. Create a list of tasks that you need to complete to reach the goal. Mark your progress on each task, so that you can celebrate your accomplishments on the way. 

Create and Maintain a Budget 

In order to have a sense of how much you can spend or save, you should keep a budget. To start with a new budget, track your expenses over a period of a month or two to see what you buy and when. If you consistently spend more than you make, look for budget items that you can trim or eliminate. Be wary of cutting back too much at once, as that can lead to excessive spending. Once you get settled into a budget, revisit it periodically and adjust quantities as your needs change. 

Streamline Payments and Savings 

To avoid late payments or running into the red, consider streamlining your payments and savings plans. If possible, set up automatic payments for services to go out as soon as possible after you get paid. Talk to utilities and other servicers about changing your due dates to coordinate with your income interval. Schedule deposits into savings accounts on payday, so you barely notice the money going out. If you don’t have much money in savings, focus on building an emergency fund first. You may not need it, but having a few hundred dollars on hand for unexpected expenses can minimize debt accumulation and other obstacles to wealth. 

Manage Debts 

Debt isn’t necessarily a threat to wealth accumulation, but it can certainly put a hitch in your investment plans. Make a list of your debts with the type of debt, interest rate, total amount and payoff date where applicable. Low-interest debts, such as a home loan or car loan, may be reasonable to keep while you work on high-yield investments. High-interest debts, such as credit cards, can cost you more than you save by making minimum payments. Focus your debt payoff strategy on the debts with the most interest to free up your income for more investments or faster debt payoff. 

Invest for the Future 

Investing money for the future gives you the ability to earn money off the growth of the investment. Investments can be as simple as putting money in a high-yield savings account or certificate of deposit at your banking institution. Consider a variety of investment types, including certificates of deposit, stocks, bonds and mutual funds. Research the investment vehicle to see its track record for growth over time. Avoid putting too much money into one investment in case it loses value unexpectedly. If you are unsure where to put your money, talk to retirement planners who can help you plan for your financial goals. 

Everyone can benefit from financial planning, whether you want to figure out how to create emergency savings or tweak your investment portfolio. By setting out your financial information and organizing a system to pay your bills and get rid of debt, you can find ways to grow your wealth. 

Author bio: Jonathan Kuiter is the Director of Business Development at Brown and Company, a wealth management firm dedicated to simplifying its clients’ financial landscapes by removing uncertainty and providing clear, tailored strategies.