Skip to main content

What is Financial Planning?

What is Financial Planning?


One of my friends came to my place for a cup of coffee and while chatting over how life is going, where is it heading, he told me that his elder daughter wishes to go abroad for her graduation. And when I asked him that how is he planning to fulfill her wish, he just laughed it off saying that her graduation is 10 years away, why should he get worried about it now. This attitude of his made me think about the importance of planning ahead of our financial goals and how many of us are conveniently ignoring this very fact.

The Term Financial Planning defines itself as planning your finances well. It is a perfect marriage between your finances and your life goals. Efficiently managing your expenses and savings in order to achieve your future goals is nothing but Financial Planning. What are future goals? They differ from person to person. Some might want to take a luxurious trip abroad and some might wish for own home. But there are few goals which might be common for all – Planning for one’s retirement, saving for kid’s graduation and post-graduation.

Financial Planning is as important as earning. If we don’t earn we will not have enough money for our expenses and if we don’t plan where our earnings are going it will all go in drain and we won’t be able to meet our expenses at later stage of our life. We all know that one needs to save to achieve our life goals, but HOW MUCH is the question where we all get stuck? This is where Financial Planning guides us and helps us save prudently for each of our goals.

One more thing where Financial Planning helps us a lot is in prioritizing our goals. We all have ample no. of dreams which we wish to achieve. Financial Planning helps us in being true to ourselves and prioritize these dreams from TOP PRIORITY to LOW PRIORITY order. Hence, helping us start with our saving in the same order of priority. 

The key is to just start with FINANCIAL PLANNING. The sooner, the better!

Charu Hastir, CFPCM is founder member of www.theriteplan.com. Rite plan is an online financial planning portal created to achieve a single objective of providing easy and Do It Yourself Financial Planning to netizens. Rite Plan is wholly owned by Tikkun Olam Financial Planning Services LLP. Please visit: https://theriteplan.com/index.php?route=common/home/

Comments

  1. Very rightly said.. being a parent and always trying to save for my child's future is a biggest challenge.. financial planning at the right time and awareness of our priorities gives us financial security we all long for.

    ReplyDelete
  2. Very rightly said.. being a parent and always trying to save for my child's future is a biggest challenge.. financial planning at the right time and awareness of our priorities gives us financial security we all long for.

    ReplyDelete
  3. This comment has been removed by the author.

    ReplyDelete
  4. Financial planning is very important in today's world.Be it education of a child, buying a house or financial security after retirement or sojourn abroad nothing is possible without planning and for this it is best to hire services of an expert in the field.

    ReplyDelete
  5. Nice blog, it sensitize us which we know but forget in our life. Financial planning is part of everybody's life.����

    ReplyDelete
  6. This is very informative. We all know the importance of financial planning but we really don't apply it our lives This tells us to differentiate between the need and necessity of life. Thanks for gearing up

    ReplyDelete
  7. This comment has been removed by the author.

    ReplyDelete
  8. Financial planning is very important in today's world. Be it education of a child, buying a house or financial security after retirement or sojourn abroad nothing is possible without planning and for this it is best to hire services of an expert in the field.

    ReplyDelete
  9. You have a genuine capacity to compose a substance that is useful for us. You have shared an amazing post about that what is finance planning Much obliged to you for your endeavors in sharing such information with us. financial management

    ReplyDelete
  10. Your blog is very valuable which you have shared here about Financial Planning. I appreciate your efforts which you have put into this article and also it is a gainful article for us. Thank you for sharing this article here.
    financial advisors in centennial

    ReplyDelete
  11. I am very thankful to you that you have shared this information with us. I got some different kind of knowledge from your web page, and it is really helpful for everyone. Thanks for share it. Read more info about Mutual Fund Portfolio Analysis India

    ReplyDelete
  12. The information in the post you posted here is useful because it contains some of the best information available. Thanks for sharing about insurance networking events in uk. Keep up the good work.

    ReplyDelete

Post a Comment

Popular posts from this blog

2018: 5 Money Lessons we need to unlearn

I. FD’s are the Best Investments Post Demonetisation Banks have reduced their deposit rates. Following which Fixed Deposits now are not an attractive debt investment option. Moreover, If you fall in 30% Tax Bracket then the return which you will earn from your FD will fall further. II. Time the Markets They Say, Time and Tide waits for none. Well, you can say the same for equity markets as well. So, don’t try to time the market, stay invested for the long term. *Sensex moved from 26595 to 34056 in the year 2017 III. Save only during Tax saving season As Benjamin Franklin rightly said, “You may delay, but time will not.” You should not save only in the Tax saving season, you should invest systematically with discipline at regular intervals. This way you can average out your returns. IV. Rely on your Company Health Insurance Most of us don’t take Personal Health Plan, thinking that our Company covers us. But have we ever thought of a scenario when we ar

Union Budget and Your Financial Plan?

Honorable Financial Minister Piyush Goyal presented this year’s Interim Budget on 1 st February 2019. Every Year, on the day of the budget announcement, you can see almost every individual glued on to their Television or mobiles to check the budget updates with much excitement. Sometimes the Budget announcements cheer us and sometimes they make us sad as we think that there are not many benefits being offered for individuals in our tax slab. Budget is also referred as Annual Financial Statement as it contains an extensive account of the Government’s finances i.e. Government’s revenue and expenditure for the fiscal year. How relevant is this budget when it comes to our personal financial savings? Should we wait for the Budget to be announced and then start our investments or should we do our investments without any relevance to the Budget? Let’s discuss this in detail. Budget helps in Tax Planning Budget surely helps in planning the taxes for the next financial ye