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

Post a Comment

Popular posts from this blog

Union Budget and Your Financial Plan?

Honorable Financial Minister Piyush Goyal presented this year’s Interim Budget on 1st 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 year. Budget is presente…

Why your Financial Plan is always Work in Progress?

Ever heard someone saying, this is my last month in the Gym, after that there is no need for me to workout ever again…I will stay fit for the rest of my life without any fitness regime. No one can retain the perfect physique forever without exercise. It is always a constant effort to stay at the desired level for almost anything that you think of. You cannot be a great chef without trying out new recipes, you cannot be a great marketer without adapting to new marketing strategies, you cannot be a great fashion designer without adapting your fashion sense towards the trending styles. Leave all of this, you even cannot even think of becoming a good parent if you don’t change from old tricks to new methods for upbringing this generation kids. If you have to upgrade your act with every other thing in life, then how your investments could be any different.
The Financial Planning Process has 6 broad steps with the last one focussing on the importance of monitoring and revision of the plan …