How to Map Your Money: Set Your Compass for Financial Success

Having a financial plan is crucial for success. Without a plan, you won’t get very far. Mapping your money and setting your financial compass will help you achieve your financial goals in life.

A financial plan is a roadmap that tells you where you are, where you’re going and how to get there: It’s your personal guide to financial success and freedom.

Most people don’t plan to fail they fail to plan.

John L Beckley.

Mapping your money and setting your financial compass is not as difficult as you may think. By taking the time to understand where you are today and where you want to be tomorrow, you can set a realistic plan to get there.

Let’s explore the three main steps to making a financial map.

Step 1: Set Your Financial GPS

The first step in mapping your money is understanding where you are financially.

The best way to do this is by calculating your net worth.

Net worth is the sum total of all your assets (property, savings, investments, etc.) minus any debts and other liabilities you may have.