Financial planning is a step-by-step approach to meet one’s life goals.
A financial plan acts as a guide as you go through life’s journey. More importantly, you need to have money at the right point in time.
For example, if you want to build up a corpus of Rs. 10 lakh for your daughter’s college education through investments, you need to grow this amount by the time she turns 18. Not a year later. This is where financial planning becomes essential.
There are numerous practical benefits to financial planning. It helps you to:
The importance of personal financial planning cannot be ignored. It is not just about increasing your savings and reducing your expenses. Financial planning is a lot more than that. This includes achieving your future goals, such as:
Benjamin Franklin has rightly said, “If you fail to plan, you are planning to fail.” You may have several different financial goals you wish to achieve but to reach them at the right point in life; you need to have a financial plan in place at a very young age.