The best investment a person can make is in himself. Financially, he must have some knowledge about his own affairs because he cannot hand over everything to a financial adviser or broker and expect that person to do it all. If he takes the time to learn about money matters, he will receive a rich reward—dividends in understanding that in the long run will improve his financial position.

How Does One Begin a Financial Plan?

The first step he should take in creating a financial plan is to identify his personal and family financial goals. Goals are based on what is most important to an individual. Short-term goals (up to a year) are things that one desires soon (house-hold appliances, a vacation abroad), while long-term goals identify what one wants later on in life (a home, education for children, sufficient retirement income). Take...