What is Financial Planning?
According to PTIC INDIA (Financial Planner in Delhi), Financial Planning is a proper management of your income through which you can meet your financial goals in life. We all have many short, medium and long-term financial goals in our lifetime. These goals can include owning a dream house, buying a car, saving for child’s future and higher education, getting your children marriage and planning for a healthy retirement.
To achieve these goals, Financial Planning plays an important role in our life. Financial Planning does not mean to Save Big, Spend Less nor you need lots of amounts to invest. It totally depends on your prioritized financial goals and how you achieve them through a proper financial plan. A good Financial Planning gives you a right path and greater clearness in life to take your financial decisions. It helps you to make a proper balance between your present and future way of life.
Basically, you can make your own financial plan, but if your needs or goals are more complex than you might need a financial planner. In Financial Planning process, it revolves around six steps that help you to make a proper Financial Plan.
- Establish your short, medium and long-term objectives in life.
- Look and write down the assets, resources, and liabilities you have.
- Check out your current financial position and how close you are to accomplish your objectives.
- Set up a proper plan to achieve your different financial goals.
- Implement your plan – roll out the improvements and get it going.
- Monitor and review your plan on the yearly basis and make modification when required.