What is Financial Planning

Financial Planning is an ongoing process to help you make sensible decisions about money that can help you achieve your goals in life; it's not just about buying products but beyond that.

It might involve putting appropriate wills in place to protect your family, thinking about how your family will manage without your income should you fall ill or die prematurely, spending money differently, but it involves thinking about all of these things together i.e. your 'plan'. You can build a plan with the help of a Financial Planner.

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Why Financial Planning

  • Future is uncertain.
  • Future risk is uncertain.
  • Future expenses are uncertain.
  • Future income is uncertain.
  • But Goals are actual …..

Some example for future expenses

Education TODAY'S COST AFTER 10 YEARS AFTER 20 YEARS
IIM - A 19.50 LAC 34.92 LAC 62.53 LAC
IIT 25.00 LAC 44.77 LAC 80.17 LAC
MBBS 50.00 LAC 89.54 LAC 1.60 CR
CAR TYPE TODAY'S COST AFTER 10 YEARS AFTER 20 YEARS
MARUTI SWIFT 6 LAC 10.74 LAC 19.24 LAC
I20 8.50 LAC 15.22 LAC 27.26 LAC
HONDA CITY 12.00 LAC 21.49 LAC 38.48 LAC
ESSENTIAL GOODS TODAY'S COST AFTER 10 YEARS AFTER 20 YEARS
SALT 17 RS PER KG 30 RS 55 RS
PULSE 130 RS PER KG 233 RS 417 RS
WHEAT FLOUR 240 RS PER 5 KG 430 RS 770 RS
MILK 52 RS PER LTR 93 RS 167 RS
MEDICAL EXP TODAY'S COST AFTER 10 YEARS AFTER 20 YEARS
CONSULTATION 600 RS 1075 RS 1924 RS
HOSPITALIZATION 3500 RS 6268 RS 11225 RS
MEDICINE 1500 PER MONTH 2686 RS 4811 RS
HEART OPERATION 3.00 LAC 5.37 LAC 9.62 LAC
PROPERTY TYPE TODAY'S COST AFTER 10 YEARS AFTER 20 YEARS
2 BHK METRO 50.00 LAC 89.54 LAC 1.60 CR
3 BHK METRO 1.00 CR 1.79 CR 3.20 CR
2 BHK NON METRO 30.00 LAC 53.72 LAC 96.21 LAC
3 BHK NON METRO 65.00 LAC 1.16 CR 2.08 CR
MARRIAGE TODAY'S COST AFTER 10 YEARS AFTER 20 YEARS
METRO 30.00 LAC 53.72 LAC 96.21 LAC
NON METRO 20.00 LAC 35.81 LAC 64.14 LAC

*Data is for references only, considering 6% inflation. All figure are in INR.

Process of financial planning

The process of financial planning should help you answer three questions :

  • Where you are today, that is, your current personal balance sheet.
  • Where do you want to be tomorrow, that is, finances linked to your goals
  • What you must do to get there, that is, the asset allocation and investment strategy that will help you achieve your objectives.

Concept of financial planning

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Developing a financial plan

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Products for Financial planning

  • Saving Bank Account
  • Systematic Investment Plan
  • Mutual Fund
  • Fixed Deposit
  • Term Insurance
  • Health Insurance
  • Equity Investment
  • Real Estate
  • Bonds
finacial Mutual fund

A mutual fund is a pool of money from numerous investors who wish to save or make money just like you...

finacial Term Insurance

Term insurance, a type of life insurance, provides coverage for a certain period of time or years...

finacial Bonds

A bond is a debt investment in which an investor loans money to an entity...

finacial SIP

A mutual fund is a pool of money from numerous investors who wish to save or make money just like you...

finacial Equity

Stock is nothing but the Ownership of the company divided into small parts and each part is called as Stock or Stock...

finacial Fixed Deposit

A fixed deposit (FD) is a financial instrument provided by banks which provides investors with a higher rate of interest...

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