Five Fundamental Concepts Behind Financial Planning

Understanding how fast assets and debt grow can help you appreciate the importance of starting to save early—and paying off debt quickly.

In saving for the future, you need to understand that as prices increase, the purchasing power of your money will decrease.

To protect their retirement savings, you need to choose a range of investments to avoid the risk of a single asset losing value.

If your employer provides a match to what you contribute to a retirement account, your assets will accumulate at a much faster rate.

In saving for the future, you need to understand that as prices increase, the purchasing power of your money will decrease.