Risks of Financial Loss
Financial risks are the potential losses of money or assets due to market changes, inflation, or poor choices. For example, if you invest only in one stock and it drops, you could lose a lot. To protect your wealth and meet long-term goals, it’s crucial to manage these risks by diversifying investments, staying informed, and making smart decisions.
Job/Business Loss, Death, Disability, etc.
Risky Investment, Inflation, Depriciation, Theft
Uncalculated Debt, Bad Debt, Bad Credit Score
Financial Risks
The first step toward managing risks is assessing your risks. That means identifying what the risks are and deciding how serious they are. When you understand your risks and what you have to lose, you can make better choices. You may be able to take action to protect yourself from the serious outcomes that you could face.
Emergency Funds
Asset Allocation
