Leticia is twenty-two years old and she has all of her savings in a Certificate of Deposit (CD) at the bank that currently pays an annual 1.5 percent yield- The account is protected by the FDIC so it is virtually risk free- She hopes to use her savings for a down payment on a new house in ten years- Inflation in house prices in her area has averaged 4 percent per year- What financial principle does she need to pay better attention to?

What is the most important step in financial planning?
Monitoring Your Financial Progress. Regular communication and follow-up are important steps in the financial planning process. In fact, creating the plan is really just the first step. You'll have ongoing contact with your planner to find out whether you are on track to meet your financial goals.