Many Canadians eagerly plan how to spend their vacation each year. In fact, you may have already put the finishing touches on your summer holiday plans! Some people plan in advance what they are going to have for supper each evening, and others plan the best route to take when they run errands. We plan parties, weddings, projects, and even the most daily tasks... with all of this planning going on, you'd think that everyone would have a plan for his or her finances in place. However, this is not the case.

Whether or not you already have a financial plan, it's a good idea to review the basic principles of financial planning now and again, to help you ensure that your plan is still on track. And if you are one of the many Canadians who haven't yet set up a financial plan, there's no better time than the present! Your Financial Advisor is a wonderful source of information and can provide advice specific to your particular situation. If you haven't already met with him or her to discuss your financial plan, consider it - after all, some of us consult interior decorators for advice on paint colours - why not consult a trusted professional to help you plan something as important as your financial future?

In any case, as you prepare to meet with your Financial Advisor or to begin or review your financial plan, here are a few questions you can ask yourself to get started:

1. Financially, where am I now?

Consider your present situation. Take a look at your assets (what you own) and liabilities (what you owe), and review your insurance policies and wills to ensure that they still meet your needs. Do you have any investments, and if so, what are your holdings? Are your assets primarily liquid, or illiquid? Do you have a pension plan? By figuring out where you stand financially in the present, you will be better prepared to assess what kind of savings plan you may need to meet your future goals and where you could comfortably cut back, if necessary.

2. Where would I like to be?

At this stage, quantify and prioritize your financial goals, and include a deadline by which you'd like to achieve each one. Consider the funds you will need to maintain your lifestyle upon retirement, the savings required to finance your children's education, if applicable, and allot funds for the less mundane things you desire, including a cottage, a dream vacation, or whatever else you'd like to accomplish or obtain. You may want to include certain members of your family (spouse, children) in this stage of planning. Be sure to temper your dreams with the insight you gained by reviewing your current financial situation, and don't forget to take inflation into account, as well as the effects of compound growth over time on your investments. Your Financial Advisor has the tools you need to help you make accurate projections about your future needs.

3. Be prepared: are there any hurdles that could stand in my way?

Now is the time to assess if you can realistically meet the goals that you have set out, and if not, address why not. Your Financial Advisor may be able to help you see barriers to your goals that you may not have even considered, including insufficient insurance coverage, or inefficient tax reduction strategies.

4.How can you achieve your goals?

This step involves developing the strategy by which to achieve your financial goals. A budget may be useful to help you better manage your cash flow - there are many software packages that you can use for this purpose. Reevaluate your current investment mix, and ensure that your holdings still suit your attitude toward risk. Once again, your Financial Advisor is a terrific resource for help with asset allocation.

Have you heard the expression, "pay yourself first"? This is a method of saving where you put away a certain amount of your income to savings, registered or otherwise. Financial Institutions can automatically set up a savings program like this for you, making it a relatively painless way to put away money for your future plans.

5. Implement your plan!

Now that you have planned your strategy, put that plan into action! If you are implementing a " pay yourself first" plan, it may take a few months to adjust to having less disposable income at first. But don't despair, knowing that you are working toward your future goals will make it easier to live without frittering away those extra bucks!

6. So how's it going?

To keep your plan on track, revisit your progress at least once each year. As time passes, your goals and your family situation will likely change, and you may find yourself in a better position in terms of income. Your Financial Advisor can assist you in revising your plan as necessary to reflect your changing lifestyle.

So now that you're thinking about the rudimentary steps to financial planning, why not take the plunge and start (or review, whatever the case may be) your financial plan today?