What are the six principles of financial planning?

A comprehensive financial plan will generally address most or all of the following topics: retirement planning, investment planning, educational funding, income tax planning, estate planning, risk management and insurance planning .

What are the 6 key areas of financial planning?

This article will discuss the six essential types of financial planning that you should be able to provide, including cash flow planning, insurance planning, retirement planning, tax planning, investment planning, and estate planning .

What is the 6 steps of financial planning?

There are six steps in the financial planning process: understanding your financial circ*mstances, identifying goals, analyzing your current course of action, developing a financial plan, and monitoring progress and updating . This is a great question to ask if you're considering working with a financial planner.

What are the six key principles?

There are 6 main principles of safeguarding as outlined in the Care Act; empowerment, prevention, protection, proportionality, partnerships and accountability .

What are the 6 elements of financial system?

This course serves as an introduction to the financial system. It breaks down the financial system into its six elements: lenders & borrowers, financial intermediaries, financial instruments, financial markets, money creation and price discovery .

What are the six pillars of financial planning?

Throughout their conversation, de Sousa and Heath dive into the six pillars of effective financial planning: retirement planning, financial management, investment management, insurance and risk management, tax planning and estate services .

What are the six common elements of financial planning model with definition?

A business financial plan typically has six parts: sales forecasting, expense outlay, a statement of financial position, a cash flow projection, a break-even analysis and an operations plan . A good financial plan helps you manage cash flow and accounts for months when revenue might be lower than expected.

What are the six principles of finance explained?

There are six basic principles of finance: 1) the principle of risk and return ties higher risk to higher potential returns, 2) the time value of money principle recognizes money loses value over time, 3) the cash flow principle prefers earlier cash flows to later ones, 4) the profitability and liquidity principle ...

What is the CFP principle 6?

Principle 6: Confidentiality A CFP professional shall maintain confidentiality of all client information . Confidentiality requires that client information be secured, protected and maintained in a manner that allows access only to those who are authorized.

What are general principles of financial planning?

The key principles of financial planning include setting specific and measurable goals, creating a budget and sticking to it, investing wisely, managing debt, and regularly reviewing and adjusting your plan .

Simple Financial Planning - The Only 6 Principles You Need To Know (2024)

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As I sat with 3,000 fellow entrepreneurs waiting for the next speaker to enter the stage, the beauty of Portland's antique theater intrigued me. Wrought iron railings, ornate tapestries, brass fixtures, and gold inset wood designs set the mood for Tess Vigeland from NPR's “MarketPlace Money” (9 million weekly listeners) to take the stage. After thunderous applause, her bold statement stunned me…

Everything you need to know about financial planning is just 6 stories, and everything else written on the subject merely rehashes those core 6 stories over and over again to make them look different.

Could it be true? Was financial planning really that simple? Just 6 core ideas? I was intrigued.

Philip Taylor from PTMoney.Com was sitting in the audience with me and was equally taken by Tess's statement. After all, we are both authors of several hundred financial articles individually and more than a thousand articles combined. Was simple financial planning really possible?

As it turned out, yes, it was. In this 13th episode of the Financial Mentor Podcast, Philip and I arrange these 6 cornerstone principles (as inspired by Tess's presentation) into step-by-step logical order of execution so you know how to turn the corner on your finances and the exact order to do it in.

The point of this podcast is to simplify all the complication and noise coming out of the financial media because it keeps you from taking action. It is the infamous paradox of choice. When there is too much information to digest then our minds go into confusion and shut down. The result is no action.

Related: Why you need a wealth plan, not a financial plan.

That's why it is so important to simplify. The number one wealth killer is procrastination because a confused mind can't take action. You must proactively design your financial life by taking daily actions to create your wealth. The sooner the better.

In this episode you will discover:

Why awareness is the necessary starting point.
How the 6 cornerstone ideas interconnect to support each other.
A simple routine that will help you run your money like a business.
The cornerstone principle that will simplify your financial life once and for all.
Which expense should be optimized first to get the greatest result for the least effort.
The difference between aligning your spending with your values vs. getting the best value for your money.
The simple trick that can get you discounts on monthly recurring bills.
The right – and wrong – way to use coupons to save money.
How to define the efficient price point (Hint – it's not the cheapest, or the most expensive).
The inherent limitation to frugality that can trap you.
Why an emergency fund is essential to the early stage of your wealth building process, and why it is useless later on.
The 3 reasons to save.
The key difference between good debt and bad debt (yes, some debt can be good!)
The dangerous self-deception that causes consumer debt.
How Philip's “separate and automate” concept will help you save more with less stress.
How to get motivated to save for retirement (if you aren't already).
3 simple steps to maximizing your retirement savings.
The correct stage for emphasizing risk management disciplines and why it is later in the process rather than early.
and much more….

Resources and Links Mentioned in this Session Include:

Philip's website is PTMoney.com.
Financial Blogger's Conference website is here.
My 7 Steps To 7 Figures Wealth Building Course
Tess Vigeland's speech from World Domination Summit 2013.
You can learn more about my financial coaching services here.
My bestselling book at Amazon is here How Much Money Do I Need To Retire?
A retirement calculator to help you engineer your retirement.
Ramit Sethi's book I Will Teach You To Be Rich
M.J. DeMarco's book The Millionaire Fastlane: Crack the Code to Wealth and Live Rich for a Lifetime.
Michael Gerber's must read book for entrepreneurs The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It
A calculator to implement the debt snowball/debt avalanche strategy as mentioned in this podcast.
Here's one last calculator mentioned in the show… for calculating your life insurance needs.
Jesse Mecham's podcast – Episode 5 – on advanced budgeting strategies to build wealth. My most popular episode to date.
And finally, here is a link to Episode 1 mentioned in the podcast where Wade Pfau debunked Dave Ramsey's estimates for investment return and retirement spending.

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