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What is financial planning ?

What are the key components of a financial plan?

Financial plans don’t have a set format, although the good ones do tend to focus more or less on the same things. After calculating your net worth and spending habits, you’ll explore your financial goals and figure out ways to make them achievable. Usually, this involves some form of budgeting and creating a means to put money away each month. To ensure that you live comfortably for the rest of your life, it’s generally advisable to devise a retirement, risk management, and long-term investment strategy and keep tax expenses to a minimum.

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