My 10 step personal financial plan, called the Net Worth Millionaire Plan, will provide you with a clear and easy step-by-step process toward your financial freedom. Further, my Net Worth Millionaire Plan, will assist you with the following:
- Understanding your current financial health
- Organizing and prioritizing your finances
- Getting you started on your path to financial success
My wife and I did not have this plan in place when we started our marriage, and money was a topic that we consistently debated (a lot…but that’s for a future article). However, through reading and research, calculating and analyzing almost every personal financial decision that we made as well as some trial and error, I developed a personal financial plan.
Over time, this plan evolved into my Net Worth Millionaire Plan. Once I had my personal financial plan in place, my short-term and long-term financial decisions became easier. Consequently, I did not have to guess, hope for the best or figure out if I was making right or wrong decisions. Moreover, my plan became a clear path to financial success for me and my family. Together with focus, planning and courage, you too can use the Net Worth Millionaire Plan to build your own financial success and attain your own financial freedom!
As a matter of fact, I have read more than 1,000 books and articles on personal finance. Many people have influenced my Net Worth Millionaire plan including Dave Ramsey (Dave Ramsey Website), David Bach, Suze Orman and that’s just to name a few. Additionally, I have consulted with friends, family, financial planners and accountants to build my financial acumen. Therefore, I believe the plan below, if followed, will set you on a financial path that you may have never thought possible.
NET WORTH MILLIONAIRE PLAN
(YOUR PERSONAL FINANCIAL PLAN)
Step 1:
- Calculate your net worth (Net Worth Analysis): Assets (what you own) – Liabilities (what you owe)
Step 2:
- a. Write out your financial goals (your new net worth): 1 month, 3 months, 6 months and 1 year
- b. Write out next month’s budget (Simple Monthly Budget)
Step 3:
- Save one month of expenses in an emergency fund
Step 4:
- Invest up to the company’s match – 401(k)/403(b)
Step 5:
- Payoff all debts (excluding your home) – smallest to largest (this builds confidence and hope)
Step 6:
- Save 3-8 months of expenses in an emergency fund (months: based on perceived job security)
Step 7:
- Invest 15% of income into retirement (including level 4)
Step 8:
- Invest into Kid’s College fund (parental choice)
Step 9:
- Payoff house
option 1 – invest extra principal payments (higher return and liquidity) until your investment matches your remaining loan payment. Keep paying mortgage and move to Level 10.
option 2 – invest extra principal payments (higher return and liquidity) until your investment matches your remaining loan payment. Payoff your house.
option 3 – add extra principal payments to mortgage (sense of security but low return/not liquid)
Step 10:
- Create more wealth-invest
Ultimately, my Net Worth Millionaire Plan is a step-by-step process that will provide you with the financial direction to increase your net worth and give you peace of mind. Furthermore, be on the lookout for articles that breakdown each step. For example, Step 1-Calculating Your Net Worth will get your Net Worth Millionaire Plan started. Finally, you should view my Millionaire By The Numbers to get a better understanding of how much money you will need to invest per month to become a Net Worth Millionaire by age 65.
PDF (print) Net Worth Millionaire Plan
View Millionaire By The Numbers
Calculating Your Net Worth (article about step 1)
Budgeting (article about step 2)
Emergency Fund Breakdown (article about step 3 & 6)
Saving For Retirement (article about step 4 & 7)
Payoff All Debts (article about step 5)
Saving for College (article about step 8)
Pay Off Your Mortgage Early (article about step 9)
