Why financial planning is necessary?

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

  1. Determining your current financial situation.
  2. Developing financial goals
  3. Identifying alternative course of action.
  4. Evaluating alternatives.
  5. Creating and implementing a financial action plan.
  6. Re evaluating and revising the plan.

THINGS TO BE DONE

  1. You need to first set aside money as saving and then start investing.
  2. You need to maintain emergency fund in case you fall ill or loose job.
  3. You need to buy just enough insurance.
  4. You need to do goal based planning wherein you invest for specific financial goals which are to be met in the future.
  5. 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.

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Comment ( 1 )

  • Manju Joshi

    CIBIL Score is the crucial factor considered by the lender while check the borrowers eligibility for business loans. Having a good CIBIL score makes it easy to get the business loans. In case of poor CIBIL score the above mentioned tips are helpful to improve.

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