Every time I write a financial plan, I'm reminded about how simple the steps are in acquiring and maintaining wealth.  Implementing the steps should be just as easy, but too often people lack the necessary discipline.  Here are the steps:

1.  Avoid debt:  This doesn't mean you cannot take out a mortgage or a car loan.  Just recognize that neither will make your net worth grow.  In fact, renting is much better than buying when it comes to your wealth, no matter what the realtors will tell you.

2.  Liquidity:  Have six months of living expenses in cash at all times.

3.  Max out on your 401k:  Every dollar you invest saves you anywhere from fifteen to 30 cents in taxes.  Employer matches are nice, but not essential.

4.  Acquire disability insurance that pays an after-tax benefit of at least 60% of your earnings.  If the benefit isn't tax free, it's almost not worth owning. 

5.  Acquire life insurance equal to 12 times your current earnings.

6.  Invest in index or asset class funds only, covering the following asset classes:  short term bonds, Large US, Large US Value, Small US, Small US Value, Large Internaional, Small International.

7.  Buy, hold, and rebalance.

8.  Never, ever, ever, ever engage in stock picking or market timing.

9.  Use a living trust to pass assets to others.

10.  Read this list once a month.