FINANCIAL PLANNING TOOLS
 Wealth-Growing Tools enable you to enhance the value of your money over time.
Financial Planning Tools are the instruments used to meet current and future financial goals through a sound financial plan.
Financial Planning Tools generally fall into two categories: (a.) Wealth-Growing Tools (b.) Protection Tools Wealth-Growing Tools The wealth-growing financial planning tools are those that help you grow and compound the value of your money over time. As such, these tools are best suited to meet financial goals that require big cash outlays such as buying a car, buying a house, preparing for your wedding or preparing for retirement. Examples of these wealth-growing financial tools are:
To make your money grow meaningfully over the years and to understand better these wealth-growing tools, you need to consider the relationship between two major variables in investing: RISK and RETURN. These two variables have an INVERSE relationship. Simply put: the higher the risk, the higher the potential returns; the lower the risk, the lower the potential returns. So if your objective is to achieve higher rates of return for your money over time, you should be ready to take risks with your money - meaning that you should be able to take periodic loss of capital. Stocks, stock or equity-based VUL life insurance and stock-based mutual funds are some of the wealth-growing tools that exhibit relatively higher risks. On the other hand, if you are not ready to take on risks with your money, you should put them in lower risk tools like bonds, bond-based VUL life insurance or a bank account. Protection Tools The Protection tools of financial planning are those whose main objectives are to serve as a robust cushion of support to you and your family's financial state should death, devastation, accident, illness or disability happen to the person who brings in the money and income for the family. These protection tools provide either a lump sum or partial cash infusion to you or your family in the event of the occurrence of one or all of those circumstances. Since major disruptive events are largely unpredictable, it is wise to use these protection tools in conjunction with the wealth-growing tools mentioned above for a truly comprehensive financial plan to work well for you. Examples of these protection tools include:
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Financial Planning Articles:
Why You Need To Maintain Both A Savings Account and an Investing Account Why Filipinos Should Invest and Not Merely Save Getting Rich Is Like Running A Marathon, Not A Sprint Delay Your Gratification To Succeed Financially 
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