Financial Planning is the process of meeting your various life goals, through disciplined and systematic arrangements of your personal finances.
It is as simple as planning for a vacation in advance or planning our to-do list for the day. Financial planning should be the core essence of our lifestyle.
It helps in giving direction and destination to your investments. It helps in managing financial emergency situations and also helps in ensuring “Peace of Mind”
for individual.
The old saying “Uncertainty” is the only constant” would fit right in the current world scenario. However, this uncertainty makes life vulnerable for us and for our
dependents. Luxurious lifestyle expenses have observed steep increase in recent times. Individual debt burden through credit cards and various loans are increasing
at a steady pace. Maximum time and effort of individuals is consumed in arranging finances or managing finances for heavy EMIs. Their precious time could be more
productive, if invested in maximizing income.
This can be achieved by systematic process of financial planning. Financial planning not only helps in reducing unnecessary expenses but also helps in lowering EMIs.
It enables one in becoming an investor where one will be earning interest rather than paying it through EMIs.
Financial planning can be done at any age. “Financial planning is good for the younger generation” is a Myth. At any stage of life an individual can go for
financial planning. Financial planning can be done for short term, medium term & Long term. Basically, financial planning can help individuals in any goal planning.
Be it a new car purchase, estate planning, children’s education, children’s marriage or retirement planning.
Financial Planning is a very simple process and can be done with assistance of a Financial Planner.
The prerequisites for financial planning process are:
If an individual is aware of afore mentioned prerequisites, then he is ready for financial planning.
There are few things which an individual should avoid while structuring financial plan:
This is absolutely true that no one can see the future but if an individual can manage and plan in present then there are high chances
that he/she will be able to manage future very comfortably. Finances managed in better way can change life and living standards. A first step taken towards
financial planning can help in ease of life and can give peace of mind. A well-planned business with help of good budgeting and control over finances can do
miracles. Similarly, well planned individual finances can also do wonders.
It helps in buying best financial product with less risk and better returns. It also helps in proper asset allocation for future needs.
Take a small step towards Financial planning today and be assured of your unseen future without any worry.