Running your personal financial operation

John Brennan, Chairman of Vanguard writes regularly in Chairman's Corner

A friend of mine likes to say that, in this era of 401(k) plans, IRAs, and other self-directed investment programs, we've all become "personal financial entrepreneurs." We have revenues and expenses, assets and liabilities. We make budgeting and investing decisions that determine our ability to fund a child's education or support ourselves after we've left the workforce. In short, we're running our own financial operations, first in our working years and later in retirement.

I see another parallel between entrepreneurial ventures and our personal financial operations: the need for a business plan. Whether you're starting a dry-cleaning business or building a nest egg for retirement, you can enhance your chances of success with a plan.

The overview is useful - a basic three step process that will help set the stage for ongoing planning.