Step 1 Determine Your Spending

Quantify the following for every major expense category from office supplies to legal services (1) How much was spent (2) Who spent it (3) Where and how was it spent and (4) What specifically was it spent for When you complete this analysis, you may be shocked to discover that  

At first, these discoveries might seem discouraging. However, they represent tremendous opportunities for both operational and economic 

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Step 1 Determine your spending. In this step, companies should quantify how much was spent, who spent the money, where and how was it spent and what specifically was it spent for. 

A realistic retirement plan can influence how you age. It can determine your happiness factor once the step has been taken. A plan, however, does not have an automatic success warranty it must be implemented carefully. Many retirees spend hours rehearsing their plans only to let them atrophy once the day arrives. In addition to designing a good plan, you must make it work. Here are some psychological phases most individuals experience as they approach retirement. 

The first step in your analysis is to determine your net worth. This is a summary of your spending and saving habits. It shows the cumulative effect of your financial decisions. It not only shows how you re doing, but also gives clues to potential changes to improve your financial future. 

First, you want to wade through all the information to get to the pertinent facts. And, for a problem like this, make an estimate in your head. If he buys a pack of razors every month (which is more than he needs) and spends 5 per pack (rounding up to make the math easier), then that s 12 x 5 = 60. You know that the estimate is high, but it gives you a ballpark figure to aim at. Now you need to determine how many shaves Ted has per year, divide that number by 6 to get the number of razors, divide that number by 10 to get the number of packs, and multiply the result by 4.95. Yes, you could divide the number of shaves by 60 instead of doing two separate divisions, but I want to show every step and not make big leaps. 

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