Is financial planning for me? Few key points to plan efficiently

Is financial planning for me? Few key points to plan efficiently

Is financial planning for me?

 

Financial Planning is for everyone and anyone who wishes to save money, make a purchase, fulfill a dream or invest for a better future. Unlike the popular perception that it is only for those who have excess funds, Financial Planning is one practice that should be a part of your most basic routine. In fact, the sooner you start, more sure you will be of what you want to achieve. And as they say, once you know what your goal is, half the battle is already won.

 

Draw examples from successful people around you. Most of them are not already financially well-off; instead they become financially stable by managing their earnings smartly. They make smart choices when it comes to investments and hence, achieve their dreams just at the right time, be it buying a house, educating their children, purchasing a car or securing their own future after retirement. So financial planning is definitely for you. All you got to do is figure out how to make it work for your own good.  

 

What is Financial Planning?

 

Financial Planning is essentially about managing your present to improve the future. Manage your current expenditure, savings, taxes and investments such that you create funds for all your future aspirations. These aspirations could be as varied as owning a house or saving for higher education, planning a holiday or handling an uncertain event like illness, accident, etc. Funds are required for everything we want to do in our lives, and better planning of our finances helps accomplish most of our wants.

 

TOP 9 REASONS WHY A FINANCIAL PLAN IS ALL WE NEED.

 

DEFINITE GOALS TO DEFINE YOUR LIFE

Funds come and go, and we seldom take notice of how and where we spent. We can either keep following the same undefined pattern, or choose a smarter path where we set a definite goal, add in a custom-built financial plan and be in a position to comfortably manage both the present and future needs of our life.  

 

A REALITY CHECK FOR THE REAL GOALS  

Once the goal is set, it is easy to measure how much you need to save, what kind of investment is required and by what time you will be able to achieve it. These parameters will further help in gauging if your goal is realistic or not. Accordingly, you can set a realistically achievable financial goal and timeline.

 

FILL THE GAP BETWEEN THE INFLOW AND THE OUTFLOW

If you can find the difference between the amount coming in and going out of your pocket, you will know if you are spending more than you are taking in. This will help in a better planning.

 

CORRECT THE MISTAKES, IF ANY

Sometimes, we don’t even see the big losses that our otherwise small financial decisions could be causing. Chances are that your investments may not be yielding as much as the interest you are already paying on certain borrowed funds. Realize such mistakes and easily correct them with a financial plan.

 

TRACKING IS A BLISS

If you are following a financial plan, say for example, investing a certain amount every month for a fixed time period, you can look back at how much you have achieved and when you are finally getting returns. This not just brings you a sense of satisfaction and success, but also, motivates you to do more.

 

KNOWLEDGE IS POWER

Talk to as many people as you can, grasp as much as possible from a financial expert, and ask for opinions from an outsider about your financial plan. A third person will look at it more practically and might also be able to suggest more ways to maximize your returns. There is a massive pool of ways that lead to financial success, and some people could be more informed and experienced than you. You can use their knowledge to gain the power of controlling your finances better.

 

RISK MANAGEMENT: LIVE REASSURED

As alarming as this term sounds, it is majorly about knowing the risks involved in your investments. Once you have identified the risk capacity and know the possibilities, you can also endow yourself with the methods of curbing them. As far as the irreversible risks go, that could affect your life including sudden illness, natural calamity or accidents, once you have a financial plan, preferably early in life, you can live reassured.

 

YOUR MONEY, YOUR PLAN. YOUR CONTROL, YOUR CONFIDENCE.

As you adopt a financial plan, you have a better control over your money, which makes you more confident as compared to the non-planners who have no idea about where their money, savings or investments are going.

 

BE WISE, WEALTH WISE

Investments done with proper planning and the right guidance pay off extremely well in the long run. Take wiser decisions today and build wealth for a greater tomorrow. Be it mutual funds, ETFs through SIP or compound interests, know what your future goals are, adopt the most fitting financial plan and stick to it with dedication. You will thank your own self when you see heavy returns in your hand.

 

Start right away, no matter how small your income is. Because today, there are financial tools and new approaches to financial planning that enable even the smallest investors to begin with the attainment of their respective goals.     

 

Stay tuned for more on old and new approaches of financial planning, and the commonly prevailing perceptions.


Visit HireCA.com Now