If you don't know where you stand, you cannot make decisions to change your reality. Sticking your head in the sand will cost you money. If you ever want to acquire wealth, you have to start by taking stock of where you are financially today, including a full and complete accounting of your income, your expenses, and your debts. Then you have to create a plan that changes your present reality and moves you toward your financial goals.

In order to reach your financial goals, you must take the time to write them out explicitly and then follow your own well-thought-out plan. In terms of your financial life and investments, prepare a list of the major things you want to be able to afford — a reasonable retirement and a vacation every year would be a good start — and then figure out what you have to save and when, and what you will invest in before you spend your savings.

Set finite goals that you can readily achieve and build upon your success. Once you learn how to set goals and implement what's necessary to achieve them, you are well on your way to creating the types of goals that will increase your finances and fulfill your dreams.

A savvy investor always computes her net worth and then creates an action plan to increase her assets and decrease her liabilities. Do the work, and the wealth will come.