what are the key components of a financial plan 
financial plans aren t one size fits all although the good ones tend to focus on the same things after calculating your net worth and spending habits you ll explore your financial goals and ways to achieve them usually this involves some form of budgeting saving and investing each month to ensure that you live comfortably and financially stress free for the rest of your life the areas to focus on include an emergency savings plan a retirement plan risk management a long term investment strategy and a tax minimization plan the bottom linea financial plan is an essential planning tool for your financial well being now and into the future it involves setting down the current state of your finances your various financial goals and methods that can help you achieve them it s never too early or late to create a financial plan and no matter the amount of money that you have a financial plan can help you to determine the best way to put it to work so that you can meet your financial needs through all of your life stages 