Online financial planning can lead you step by step through the thicket of investments, retirement planning, savings and budgeting that many of us find intimidating and confusing. There are two main types of online financial planning sites: sponsored and general. Sponsored sites, while they may offer a lot of free help, eventually want to sell you their services. There are also sites offered by government agencies and other service entities that provide information free of charge.

Sponsored sites can give you more specific advice, since the other sites are geared to a general populace. The only caveat when using a sponsored site for online financial planning is to be sure it is sponsored by a reputable company. Both types of sites, however, can help you get started on a financial plan.

Budgeting, of course, is the first step, and it's surprising how many people don't do even that. It's essential that you know your net worth and your basic monthly expenses. Once you have that knowledge, you can begin setting goals.

Online Financial Planning: Know Where You're Headed

In order to plan effectively for your future, you need to know what your goals are, both short-term and long-term. Do you want to buy a house, send kids to college, travel the world or start your own business? You'll need a financial plan, since these things aren't going to "just happen." Beyond your stated goals, you'll also need to think about health insurance, retirement funding, estate planning, long-term medical care and other topics that aren't as much fun to contemplate as a trip to the Bahamas. Online financial planning sites can help you work through all these fields with a minimum of stress and confusion.