All financial strategies should contain: A measure of your current financial status, a list of your financial objectives, and the steps you need to take to reach said objectives.

Other points to address in your financial strategy include:

Consistent saving: Utilizing a payroll deduction or other automatic savings program is usually more successful than trying to save on a less regular basis. Automatic saving plans result in consistent deposits and are available in a number of forms. Select one that fits your budget and meets your long term needs.

Sensible spending: Understand how you spend your money. Prepare a household spending worksheet. It will enable you to prioritize your spending and identify areas of potential saving.

Smart borrowing: Borrowing can enable you to obtain things that are otherwise beyond your current reach, but borrowing costs money. Loans for things that provide lasting and ongoing value (such as an education, a home or car) are smarter than borrowing for short-term gratification (extravagant vacations or expensive jewelry).

Smart borrowing also includes making sure the rates and terms of your loans are as attractive as you can get. Before borrowing (whether it is a credit card, auto loan, mortgage or other loan), make sure you understand all the terms. The interest rate, length of loan and method of calculating interest should be clearly understood.

Wise investing: Investments come with risks, and hopefully higher returns to compensate for those risks. Understanding the risks of loss, price fluctuation and inflation are necessary when creating a sound investment strategy. Diversification, asset allocation (dividing funds into stock, bond and cash investments) and investment costs should all be considered as part of a wise investment strategy.

Sufficient protection: Periodically, you should review all your insurance coverage. This includes homeowners/renters, health, disability, auto and any umbrella policies you may have. For peace of mind, make sure you have the right combination of coverage and deductibles. If you use insurance primarily for disaster coverage, remember that higher deductibles usually translate into lower premiums.

For life insurance, evaluate how much you really need. If your family would need significant funds to replace your income, a larger policy may make sense. If you are single, perhaps a smaller policy (and smaller premiums) will be sufficient. Also, compare the benefits and costs of term and whole life policies. For younger, healthy individuals without a need for permanent protection, a term policy may be a better choice.