What Is Financial Planning

What is Financial Planning?

Financial Planning is a critical use in ensuring your Long-Term Financial Security in all possible ways, Indeed it’s a roadmap to achieve Financial Freedom in different stages of your life like

Buying a Home/ Car/ Other Goals like planning a Vacation Abroad

Emergency Money Planning
Child’s Education / Higher Education Planning
Child’s Marriage Planning
Retirement Planning
Passing the Created Wealth to the Next Generation.

There are some basic questions to answer for doing financial planning :

Where you stand today? What is your current financial situation?
Where do you want to get to? What is your vision of your future financial situation?
Will you be able to get there? How do you plan to achieve your vision?

For a financial plan, you need to analyze your financial needs & goals here as mentioned above.

One should measure in terms of money that what resources one needs to meet this stages of different goals and also the time period to achieve these goals.

Finally, one has to write an action plan so that to fulfill the Plan what products are useful to buy and savings to be done or increase/decrease in future too.

Why Do You Need Financial Plan

Is this time is right for a financial planning?

Still many years remaining in my retirement, why to plan so early?

The best time to make your financial plan is TODAY, as Financial Planning is a continuous process, as it remains in contact till each goal is executed in a proper way.

Life has many uncertainties, if you start early you will have more time left to make your money grow more, as we grow older our expense will rise and we may regret that time has passed.

Times are never constant, it changes so as our needs as we and our families grow old, the change in lifestyle or maybe change in inflation happens; some of the things are not in our hand such as inflation & purchasing power. So the old investment we have done will not make sense sometime in the future as the inflation rises.

Some examples of this:-

Change in lifestyle
Change in family culture/addition of a family member

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