Foundation to Risk Based Financial Planning
The foundation to financial planning is to ensure all your basic personal risks are managed well. You would have to ensure that you have an emergency fund provided for loss of job due to varied circumstances.
Having done that then setting aside money on a regular basis to ensure that your retirement needs are taken care of and in some cases even achieving your child’s education becomes very important.
Risk management is an important part of the financial planning process. Without the proper risk management tools you and your way of life are exposed to potential large financial losses.