Only those licensed to use the CFP™ mark are allowed to represent themselves as Certified Financial Planners.

Among the requirements to become a CFP™ is a two-day, 10-hour certification exam that covers the financial planning process, retirement planning, tax planning, investment management, and insurance and estate planning.

Both the ChFC, Chartered Financial Consul-THE FIRST STEP 5 tant, and CLU, Chartered Life Underwriter, can help you analyze your financial needs and choose the right course for maintaining and increasing your assets.

Both designations require comprehensive curriculums of 10 college-level courses. The ChFC designation also requires an additional three courses.

If you feel there are excess transactions in your account, talk to your advisor about it. The only transactions that occur in your account should be done at your discretion and with your input.

However, if the advisor is the agent of a registered investment firm, then do not make your check payable to the advisor personally.

Some firms allow what is called discretionary power. This means that if you consent, your advisor can make moves within your portfolio without consulting you.

However, I have encountered people who are adverse to paying any type of fee for financial planning. They would rather have the advice up front for free. Would you go to your doctor or dentist, ask them what needs to be done, and then expect not to pay? Of course not. Financial planners are professionals just as doctors and lawyers are. There is a fee for service.

The tenet of asset allocation is to identify a mix of different types of investments with the highest potential return for your level of risk tolerance, consistent with your goals and the time frame in which you have to reach them.

Going to Marshall Field’s and buying a shirt you don’t need and didn’t anticipate buying for $35 isn’t saving $40. Just be sure that when you buy something, you need it. Passing on the shirt for $35 that you normally would have bought is saving $35.

A good way to make sure you do pay yourself first is to write yourself a check before paying any bills. Another good way is to have your bank account automatically debited to your investment accounts each month.

Do you get quarterly or annual bonus checks or raises? Consider saving these, rather than spending them. These will help increase your savings at a faster rate. Ignore that raise you just received when you do your budgeting. If you don’t increase your consumption habits, but increase your income, you’ll be able to save more without skimping on your living expenses.

This is easy; all you need to do is shop before you buy.

I’ve discovered that by buying items in bulk quantities, not only do I wind up spending less over time, but also I don’t have to go shopping as often. [this is true, saving time is saving money, in some sense]

You may also want to think about delaying the purchase of something that isn’t necessary.

Generally, though, speculation refers to the purchase of securities, or other assets, by people who hope that the assets’ value fluctuations will produce relatively large payoffs over a short period of time.

[in chp4 and chp5 of this book, the author makes a simple by not too trivial introduction to the stock, option, and mutual funds. Check it out later when I am really into it]