We all earn money and spend money. Money flows like water. If we do not plan the flow of money properly, it will find its own direction. Therefore, it is essential for us to make our money work for us. This is only possible by having proper financial planning.
Financial Planning ensures efficient management of your money. Financial Planning helps you know your accurate financial standing which enables you to take decision of investing your hard earned money across different asset classes depending on your financial goals. With the help of the financial plan, you can convert your dreams into reality and build wealth over a period of time.
Financial Planning will take away all your worry of paying for your child’s education, your parents and your unexpected medical bills, your retirement and of course what will happen to your family in the event of your death. It will prepare you for the challenges faced during life changing events and maintain financial discipline. It will also help you identify some expenses which can be avoided and also help you getting out of bad debt.
Financial planning process generally consists of following steps:
- Goal setting
- Risk profiling
- Asset allocation
- Creating the portfolio
- Reviewing the plan regularly and track your progress toward your goals