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.