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.
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/
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.
ReplyDeleteVery 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.
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ReplyDeleteTrue that !
ReplyDeleteThis was very enlightening!
ReplyDeleteThis was very enlightening!
ReplyDeleteFinancial 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.
ReplyDeleteNice blog, it sensitize us which we know but forget in our life. Financial planning is part of everybody's life.����
ReplyDeleteThis 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
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