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Step Two
Determine the True Purpose of Money in Your Life
As a financial advisor, I specialize in doing what we call Purpose-Focused Financial Planning™. What this means is that before I start trying to figure out how much money my clients may need for their futures, I first help them try to get a clear idea of what they see as their purpose in life.
This concept often surprises people. The media and the investment industry have gotten us so focused on what they call "retirement planning" that everyone thinks personal finance is all about determining how much money you need at retirement. In fact, most people assume that when they meet with a financial advisor or planner the conversation should focus on specific investments, net worth calculations, tax rates, and how many years they will have to work before they can retire. While all these things are important, they are not what is most important. What I believe is most important is first having a conversation about what it is that matters most to you. What is it that you stand for and what it is that you care most deeply about? In other words, what are your values?
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Last year I first took your advice from watching the Oprah's debt diet. I applied many of the ideas given and took a conservative approach to addressing my very real debt, one thing was a student loan that had haunted me for more than 10 years. I got a low interest loan and paid off my debt. I made my payoff arrangements for the loan very agressive. I gave myself 1 yr to pay it back. This meant I would have to learn to live without almost $700 per month of my income. My friends and family though ... 
In Start Late, Finish Rich, David Bach takes the "Finish Rich" wisdom that has already helped millions of people and tailors it specifically to all of us who forgot to save, procrastinated, or got sidetracked by life's unexpected challenges.
