Financial Planning Is Not Just for the Rich

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1.0 Financial planning is not only for the rich. “I am not rich, so I do not have money and do not need to do financial planning”. This is a misconception in financial planning but also a common conception in many people’s attitude of financial planning. How many people know that financial planning is how the wealthy became wealthy? Before I start this topic, I want to illustrate that the principle of financial planning is the person with income. Financial planning is managing your money and uses your money to make more money, but not a magic that produce money for you in any time and any situation. So financial planning can works for anyone except the person without income. Financial planning is the process of meeting your life goals proper management of your finances. Life goals can include buying a house or car, saving the education fees for children, having a rich and happy retirement life. As everyone known that all these goals are need money as a strong assistant. There is a popular sentence about financial planning these year,”if you do not plan your money, the money will not work for you”. So, what is your capital? And how can you get your goals? Different people have different strategies. The rich needs to grow and protect their wealth, and the not so rich needs to maximize their resources to ensure a lifestyle for themselves and their family. When you want to maximize your existing financial resources by using various financial tools to achieve you financial goals, that is financial planning. I will discuss this topic from two aspects in this assignment, financial planning process and categories of financial planning. 1.1 Financial Planning Process Financial planning process is a good method to help everyone understanding this misconception. Here, I will introduce this process as a financial planner: Step 1: Establishing a

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