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/