It is a process which accesses the future financial goals of a person and helps to achieve those through a systematic & customized plan.
Financial Planning is an ongoing process to help you make sensible decisions about money that can help you achieve your goals in life.
In Laymen Language, Financial Planning is the tool to decide the goals at initial level and then implement a plan accordingly.
Why financial planning is Important?
Financial planning help you to determine your short and long term Financial Goals.
So here are some reasons that why this exercise is important-:
Determining Financial Goals-:
This exercise helps a person to determine his/her financial goals and help to identify & prioritize those accordingly.
A Customized Plan-:
This is most important step wherein a Financial Planner designs a customized solution for the person and gives full awareness and information about the products which are best suited.
Implementing the Plan-:
Now, here comes a part wherein a person has to take a decision to how this plan has to be implemented and in how many parts it has to be implemented. This step is totally dependent on the funds availability and other factors.
As every person is stucked in some or the other expense and cannot implement the whole plan in one shot, so most importantly this repeat activity has to be done to fill the gap of the previous session and plus to add a new fruit to the previous session.