Why do so many people never obtain the financial independence that they desire? Often it's because they just don't take that first step--getting started. Besides procrastination, other excuses that people make are that investing is too risky, too complicated, too time consuming, and only for the rich.

The fact is, there's nothing complicated about common investing techniques, and it usually doesn't take much time to understand the basics. Investing is for everyone, not just the rich. And the biggest risk you face is not educating yourself.

Both saving and investing have a place in your finances. But don't confuse the two. With savings, your principal typically remains constant and earns interest or dividends. Savings are kept in certificates of deposit (CDs), checking accounts, money market accounts, and passbook savings accounts. By comparison, investments can go up or down in value and may or may not pay interest or dividends. Examples of investments include stocks, bonds, mutual funds, collectibles, precious metals, and real estate.

You invest for the future, and the future is expensive. For example, college expenses are increasing at double the rate of inflation, and people are retiring earlier and living longer.

You have to take responsibility for your own finances--nobody else is going to. Government programs like Social Security will probably play a less significant role in your life than they did for previous generations. Corporations are switching from guaranteed pensions to plans that require you to make contributions and choose investments. The better you manage your dollars, the more likely it is that you'll have the money you want for your retirement.

Because everyone has different goals and expectations, everyone has different reasons for investing. However, it simply comes down to managing your money to provide a comfortable life and financial security for you and your family.

• Get in the habit of saving. You must set aside a portion of your income as often as possible.
• Invest in financial markets so your money can grow at a meaningful rate.
• Ignore short-term price fluctuations, and focus on long-term potential.
• Ask questions and become educated before making any investment.
• Invest with your head, not with your stomach or heart. Avoid the urge to invest based on how you feel about an investment.

Organize your finances to help manage your money more efficiently. Remember, investing is just one component of your overall financial plan. Get a clear picture of where you are today.

What's your net worth? Compare your assets with your liabilities. Look at your cash flow. Get a grasp on the amount of income that you're receiving, and where that income is going each month. List your expenses. You can typically identify enough expenses to account for at least 95 percent of your income. If not, go back and look again. You could use those lost dollars for investing. Are you drowning in credit card debt? If so, pay it off as quickly as possible before you start investing. Every dollar that you save in interest charges is one more dollar that you can invest for your future.

Establish a solid financial base: Make sure you have an adequate emergency fund, sufficient insurance coverage, and a realistic budget. Also, take full advantage of benefits and retirement plans that your employer offers.

Take advantage of the power of compounding. Compounding is the earning of interest on interest, or the reinvestment of income. For instance, if you invest $1,000 at 8 percent, you will earn $80. By reinvesting the earnings and assuming the same rate of return, next year you will earn $86.40 on your $1,080 investment. The following year, $1,166.40 will earn $93.31.

Use the Rule of 72 to judge an investment's potential. Divide the projected return into 72. The answer is the number of years that it will take for the investment to double in value. For example, an investment that earns 8 percent per year will double in 9 years.

Whether you need a financial planner depends on your own comfort level. If you have the time and energy to educate yourself, you may not need any assistance. However, don't underestimate the value of the experience and knowledge that a professional financial advisor can offer. A financial planner can help you define your goals and objectives, make a net worth statement and a spending plan, decide the level of risk that's right for you, and work with you to create a comprehensive financial plan. For many, working with a professional advisor is the single most important investment that they make.

Financial management is an ongoing process. Keep good records and recalculate your net worth annually. This will help you for tax purposes and show you how your investments are doing over time. Once you take that first step of getting started, you will be better able to manage your money to help afford today's needs and pay for tomorrow's goals.