When it comes to personal finance, often the difference between poverty and prosperity is how much control you have over your investments.

The sad fact is that some people just dont either have the time, inclination, or confidence to take control over their own investment portfolio. Thats a big mistake, since no one will step in for you and make good on a lousy asset allocation strategy or redirect misguided fund selections that can lead to portfolio losses and threaten your financial well being.

Fortunately, getting a grip on your investments is easier than you think. In fact, you can get the job done in nine easy steps.

Step 1: Define Your Goals

Any good marksman will tell you the key to hitting a target is having a target. Having something to work toward is the first step in investment success. Knowing your financial goals, whether its retirement, a home or college education, will help define your investment strategy and set you on the right path.

Step 2: Know Your Net Worth

Net worth is simply the total of all the assets you own less all of the debts you owe. Your net worth gives you an understanding of where you are in relation to achieving your goal, and serves as a useful indicator of your overallfinancial health.

Knowledge of how you are tracking toward your goal is critical in the investment process, and measuring your net worth from year to year is a critical yardstick to evaluate success.

Step 3: Know Your Risk Tolerance

Your overall financial risk tolerance depends on two things: your attitude towards taking risk and your capacity to take risk.

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Get a Grip: Nine Steps to Controlling Your Investments