{"id":718,"date":"2019-12-09T09:01:19","date_gmt":"2019-12-09T09:01:19","guid":{"rendered":"http:\/\/www.unitedfinances.com\/blog\/?p=718"},"modified":"2019-12-09T09:01:19","modified_gmt":"2019-12-09T09:01:19","slug":"key-components-of-the-financial-planning-process","status":"publish","type":"post","link":"https:\/\/www.unitedfinances.com\/blog\/key-components-of-the-financial-planning-process\/","title":{"rendered":"Key Components of the Financial Planning Process"},"content":{"rendered":"

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The line that separates a comfortable life and bankruptcy is thin. It only takes a medical emergency or lingering illness to lead one to a life of financial struggle. Everybody knows the story of \u2018The Ant and the Grasshopper\u2019, which teaches the value of saving for a rainy day. However, even if the moral of the story is ingrained in our minds from the time we were young, practicing it is a different matter altogether.<\/span><\/p>\n

But this uncertainty to go through the financial planning process<\/b><\/span><\/a> is deeply rooted in misconceptions. The lack of understanding is fueling doubts. A 2016 survey revealed that seven in ten Americans have a phobia of working with financial advisors.<\/span><\/p>\n

Among their reasons were:<\/span><\/p>\n

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  1. They feared that they might end up spending a lot of money.<\/span><\/li>\n
  2. They were scared of confronting their actual financial affairs.<\/span><\/li>\n
  3. They did not trust the financial planning process.<\/span><\/li>\n<\/ol>\n

    According to the CNBC report, about seven in ten Americans handle their budgets and finances on their own. The figure is alarming, considering that almost eight in ten workers in the United States admit to living paycheck-to-paycheck<\/b><\/span><\/a>. And the number of people in this demographic is increasing. <\/span><\/p>\n

    According to the National Financial Educators Council, the lack of financial literacy costs<\/span><\/a> homeowners a great deal of money. A survey of participants across the country found that there were huge monetary losses due to inadequate financial planning.<\/span><\/p>\n

    What Are the Key Steps of Financial Planning? <\/b><\/span><\/p>\n

    One of the crucial ways to combat fear is by familiarizing yourself with the financial planning process. When you break down the whole procedure into easily digestible pieces, your fear will reduce. <\/span><\/p>\n

    When you work with a financial advisor, you are likely to go through the following procedure:<\/span><\/p>\n