I am not sure at what point after I began trying to take control of my finances that I realized I had no idea how to know if or when I would actually attain the control I was seeking.  When would all the obsessive research and spreadsheets be enough that I could confidently say that I was in control of my finances?

While there is no magic formula for the perfect financial plan, I knew that whatever plan I’d follow, I would have to take into account four phases of my life: the present, the unknown, the past and the future.  Below is the list I compiled of the major components of my financial plan:

(1) The Present:  Make sure you spend less than you earn

• (a) Live on a budget – this means composing a monthly spending plan, including your fixed expenses, variable expenses and tzedakah
• (b) Occasionally review and attempt to reduce expenses
• (c) Increase income – this includes watching your investments (for example, your keren hishtalmut) to make sure you are getting the most out of your money.

(2) The Unknown:  Plan for occasions when things do not go according to plan

• (a) Build an emergency fund – follow the advice of Dave Ramsey’s baby steps
• (b) Make sure you have the correct forms of insurance (if you are unsure what insurance you may need, see my series about insurance: Part 1: an overview of the different kinds of insurance and Part 2: how to buy insurance)

(3) The Past:  Deal with your financial past

• (a) Pay off your old debts (use the debt snowball)
• (b) Change your mindset (#$@& the Joneses!)

(4) The Future:  Plan and build towards your ideal future

• (a) Compose an Estate plan so you can control what happens to your money and other important assets when you die
• (b) Learn to choose and manage your Keren Pensia:  If you are unsure how to go about this, please see Shomer Shekalim’s series on the Israeli pension system here.

What other items do you think are important to a financial plan?

PS – As you can see the plethora of links above, I have written on all of the subjects above except one – planning for an estate.  If anyone has had any experience and would be willing to speak to me about it or write and article, please contact me at jonnydegani@gmail.com.