You may have heard of the term financial planning before. But what does it really involve? To many people, it's a fuzzy concept. In part, that's because it's a process that looks at everything to do with your finances. This includes:
- saving and investing
- paying down debt
- retirement planning
- estate planning
To build a solid financial plan, you need to keep in mind how your choices in one area will affect another. For instance, if you choose to save for your children's education, you will have less to save for your retirement. If you don't buy disability insurance, you will need more savings in case you get sick or injured and can’t work.
Remember: Financial planning is all about making good financial choices. That's why it's something you should do over the course of your whole life - even before you have a lot of money saved. In fact, it's one of the most important things you can do for yourself and your loved ones.
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.