“Someone’s is sitting in the shade today because someone planted a tree longtime ago.” – Warren Buffet
Financial planning is the process of achieving life goals using different investment options. Financial planning is necessary as it helps you to meet the long, medium and short-term life goals. It is not only monetary, but also helps in fulfilling your dreams. It makes you feel secure and ready for the future.
STEPS IN FINANCIAL PLANNING
- Determining your current financial situation.
- Developing financial goals
- Identifying alternative course of action.
- Evaluating alternatives.
- Creating and implementing a financial action plan.
- Re evaluating and revising the plan.
THINGS TO BE DONE
- You need to first set aside money as saving and then start investing.
- You need to maintain emergency fund in case you fall ill or loose job.
- You need to buy just enough insurance.
- You need to do goal based planning wherein you invest for specific financial goals which are to be met in the future.
- You should continuously review and revise your financial plan to remain consistent with your goals.
If you’re not sure with managing your own money, you can consult a financial planner/advisor to do the same. A financial advisor is an expert who will help you in avoiding financial blunder.