Assessment : A personal balance sheet lists the values of personal
assets (e.g., car, house, clothes, stocks, bank account), along with personal
liabilities (e.g., credit card debt, bank loan, mortgage). A personal
cash flow statement lists personal
income and
expenses.
Creating a plan: The financial plan details how to accomplish your goals. It could include, for example, reducing unnecessary expenses, increasing one's employment income.
Execution: Execution of one's personal financial plan often requires discipline and perseverance. Many people obtain assistance from professionals such as accountants, financial planners, investment advisers, and lawyers.
Monitoring and reassessment: As time passes, one's personal financial plan must be monitored for possible adjustments or reassessments.