Components of personal financial planning
managing risk
adequate insurance coverage is another component of personal financial planning
retirement and estate planning
knowledge of property transfer method can help you select the best course of action for funding current and future living costs, educational expenses, and retirement needs of dependents.
borrowing
maintain control over your credit-buying habits. this will contribute to your financial goals
planning
planned spending through budgeting is the key to achieving goals and future financial security.
spending
spending less than you earn is the only way to achieve long-term financial security
saving
start a savings plan and use additional money for investments that offer greater financial growth
investing
you can achieve investment diversification by including a variety of assets in your portfolio
obtaining
you obtain financial resources form employment, investments, or ownership of a business. obtaining these resources is the foundation of financial planning, since these resources are used for all financial activities.