We all have dreams, be it owning a car, house, child attending a prestigious college or building a healthy retirement corpus. Fact suggests hardly we pen down these goals and work towards a plan for achieving them. These can be termed as your life goals. Contrary to popular belief, financial planning is not just investing. Financial Planning is the process of meeting one’s life goal through proper management of personal finances. Financial planning helps you determine your short and long-term financial goals and create a balanced plan to meet those goals.
WHAT IS FINANCIAL PLANNING
Financial Planning is an ongoing process to help you make sensible decisions about money that can help you achieve your goals in life; it's not just about buying products like a pension.
By planning your finances to meet your goals you will:
• Have a much greater confidence of where you are going in life
• Reduce your stress levels and start to enjoy life more
• Gain control and peace of mind through knowing whether you’re on track for the future you want for you and your family
|FINANCIAL PLANNING PROCESS|
The Financial Planning Process consists of six steps that help you take a 'big picture' look at where you are currently. Using these six steps, you can work out where you are now, what you may need in the future and what you must do to reach your goals. The process involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan for how you can meet your goals given your current situation and future plans.