Once you have put your finances in order, you are prepared to invest; the first step is to define your financial goals. Remember that your financial goals are personal goals with a financial cost attached. Once you have written down your financial goals, write out your investment plan, which is your road map for investing.

Like a good road map, a good investment plan helps you know where you are at and where you are headed. A good financial road map helps you to know your goals, your budget, and your risk tolerance; it also helps you avoid hazardous detours, such as get-rich-quick schemes, which may delay or stop your progress. A good financial road map also helps you decide where you want to go in terms of your personal and family goals and helps you get where you want to go through helping you make wise choices regarding investment and savings programs. A good investment plan is key to achieving your financial goals. The purpose of this section is to help you write out your personal investment plan.

When you have completed this section, you should be able to do the following:

1. Understand the importance of financial goals and know how to set them.
2. Know how to prepare a personal investment plan and understand its importance.
3. Identify and be aware of get-rich-quick schemes.