Financial planning may seem like a daunting and scary concept, but it doesn’t have to be. By understanding and following the seven key components of financial planning, you can reap the positive benefits of including financial planning as a staple in your financial life. The seven key components of financial planning are goal setting, tax planning, risk management, cash flow management, investments, retirement planning, and estate planning. Each component lays the groundwork for the financial success that you can achieve and provides a roadmap to understanding and mastering your finances.

Goal Setting
Goal setting is one of the most fundamental components of financial planning. It’s important to ask yourself “ What do I want my financial future to look like?” To accomplish this, it’s important to know your motivations, desires, and financial limitations. Although a plan is an important tool, it’s even more important to be realistic when creating your goals. Setting realistic goals helps to keep your plan on track and assists in maintaining motivation.

Tax Planning
Tax planning is an important component of financial planning and involves understanding and anticipating potential tax liabilities. To do this, it’s important to be aware of current tax laws and regulations and