Financial planning is much more than just buying life insurance, or an annuity and calling it a day. Many people have a false perception of what financial planning really entails accompanied by a false sense of fear.
Financial planning is not just a singular action, the concept is a process to follow, much like a diet plan. If you wanted to lose weight, or live a more active lifestyle, would you just start by making random purchases of products you think can help? Most likely, you would not. One of the best examples I can think of to help explain the reality of financial planning is a weight management program, such as Weight Watchers or Jenny Craig. If you have ever been a part of these programs, then you know that they are more involved but generally lead to great results. When you join a program like these, you simply do not just try to eat better, workout more, and hope for the best.
When you are creating a financial plan, you follow a similar format to that of a weight management program, acknowledging that both plans are to make your life better from now on so you can live longer and enjoy life!
| Financial Planning | Weight Management | |
| Step 1: Find your starting point | Where do you currently stand financially? What assets and investments do you have? | What are your measurements: weight, diet habits, exercise frequency, etc. |
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