Here's a Financial Planning tip drawn from the habits of high net worth individuals. The rich know that their homes are first and foremost homes to live in, and are a liability in every sense of the word far more often than an asset on the balance sheet. However, mortgage money is the cheapest money available. Separating cash from home equity and utilizing negative amortization loans to defer interest are two ways by which the wealthy increase their ability to invest in truly liquid, appreciating, or income producing assets classes.

An important step in financial planning is to maximize your contributions to retirement accounts. Many of these accounts earn interest tax free and some receive employer matching contributions. Always maximize the amount of money you can contribute to tax preferred retirement accounts.

Life insurance is one of the most important financial planning steps you can take. If you are the sole income earner you should have adequate life insurance to protect your family and your investments, some experts recommend 5-10 times your yearly income. Adequate life insurance will guarantee that your family can live comfortably while paying everyday life expenses without draining any 401K, IRA'S or Stock accounts.

Your Home Equity can be the greatest under-utilized asset that you may have. Your mortgage professional can work with your Financial Planner or Investment advisor to come up with a mortgage payoff plan that is in align with your investment objectives. Getting a mortgage check-up can be an easy, free, service to determine if your home equity can be put to better use.

Home owners are increasingly viewing their mortgage as a financial tool. If used correctly, your mortgage can be an excellent tool to plan your financial future around.

Just like finding the right mortgage professional,, ask for referrals from friends and interview more than one financial planner. Be sure to examine what your risk threshold is for investment vehicles.