The 1990s have challenged middle-class America's traditional optimism about the country's continued economic progress. Many small business owners, as well as the employees of large and small businesses, find themselves questioning as never before whether their current standard of living is secure, whether their retirement hopes are attainable, and whether their children will even be able to match, much less exceed, their current financial status. Several factors have contributed to this feeling of economic unease, including:

• lower earnings on pass-book saving accounts and certificates of deposit, long the staple of middle-class saving
• the slow growth — and in some areas of the country, the actual decline — in the value of residential real estate, undercutting what as been the middle-class's premier safe and tax-advantaged leveraged investment
• foreign competition to U.S. businesses, threatening the livelihood of employees, and the very existence of the affected businesses
• questions about the long-term existence of the social security system, at least in its present form and benefit levels

Additionally, before starting your small business, you may have had painful experiences with some or all of these personal-wealth-draining situations:

• stagnant wages (sometimes accompanied by a longer workday) that didn't keep up with inflation
• corporate downsizing, reductions in workforce, forced early retirements: a firing by any other name still smells no sweeter
• reductions and terminations of employer-supplied health and retirement plans

What can you do? Because you are reading this, chances are good that you have taken the first step (or at least are thinking about taking it) that may enable you to rise above these stresses on your personal financial wealth: that of starting your own business. Small business ownership is not for everyone. However, U.S. government statistics show that about two-thirds of the country's economic growth in the last decade has occurred as a result of small businesses. So it seems like you're looking in the right place. A successful small business can provide you with the source of money necessary to plan, and bring about, your financial security.

The process of translating a stable and adequate income supply into the achievement of your economic goals begins with financial planning. Through the development of your personal financial plan, you will be able to identify and reach your monetary goals by deciding how best to pay yourself, spend and invest your money, and take advantage of tax-saving opportunities.

Through this financial planning system, we'll guide you through five steps to allow you to create your own individualized financial plan:

1. Identifying what you have now: the first step is taking stock of your wealth, income and expenses, and existing planning documents.
2. Deciding what you want: next, you have to set your goals and quantify them in terms of dollar amounts, and the time you have to achieve them.
3. Determining how to get there: this is heart of the financial plan. You need to figure out what you must do to achieve your goals, or readjust them so they become attainable.
4. Implementing the plan: this may be the most important step for you to take. Many plan, fewer implement.
5. Monitoring the plan: even a good plan can sour with age. You need to keep your plan up to date by making sure you investments perform as expected, and by adjusting your plan for changed circumstances.
6. What if you need help: we offer a few words about using professionals to refine your plan.

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