The Financial Pyramid. This is the philosophical pyramid on which a solid financial plan is based on.
Addressing the PYRAMID. You must first build a solid base with income. Then implement coverage for all catastrophic losses, such as your home your income.
Once the Risk Management level has been addressed properly you can feel comfortable moving on to the Level of accumulation
This level is building an emergency fund funding a retirement plan and/or college savings plan along with personal investments such as stocks and or mutual funds.
The final Level is to address your " Last Will and Testament. " How do you wish to leave your assets couple with a strategic tax diversification plan.
Skipping or jumping levels will only cause your solid based PYRAMID to turn into a house of cards.