THE COMPONENTS OF FINANCIAL PLANNING. There are different levels of financial planning and they have a purpose of ensuring that a person receives growth, safety, and security. There are three levels that can be used to plan your finances. The three levels include safe and secure plan, a rich plan and a comfortable plan. The safe and the secure financial plan has three components which are the protection component, the saving component, and the growth component. Some of the basic financial plans found in the protection component include the car and home insurance, liability umbrella insurance, disability, life and health insurance. Ensure that any member of the family can be able to access these insurance covers regardless of who dies or who gets disabled. As you look for an insurance cover during the finance planning ensure that you focus on the strategy and not the product. In the market you will find so many insurance companies that are offering the same products, you should concentrate on the relationship you will have with the company and not the products they are offering you. The growth component is the second component of finance planning which is a safe and secure plan. This is a safe and secure financial plan because where you put away all the expenses for three to six months so that you can secure your account. This is the safest financial plan because it ensures that your family survives even after you have stopped earning. If the bread winner of a family dies or loses a job, becomes disabled or dies most of the families suffer. It is important that you put some money aside that your family will be using before you are able to solve your problems. You should also look for the benefits being offered by your company as a way of financial planning. Also, consider the retirement plan as one way of your financial planning because it is a savings plan. With the retirement plan you can accumulate so much money because the money has some discipline that it cannot be used until you retire.
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The third component of financial planning which is safe and secure is known as the comfortable component. This is a component that you will use to build the real wealth. Building the real wealth starts with putting a little amount of money in the stock account or in the mutual funds account depending on the financial capacity a person has. In this financial plan you can be able to move from the growth financial plan to a comfortable financial plan. With the right financial planning advisor you will know your current financial plans, you will get suggestions, and recommendations that will help you secure your long term financial future. For a financial advisor to be able to help you in your financial planning they have to understand their clients objectives so that they can assist them successfully.The Key Elements of Great Plans