Financial Planning – A blueprint for your second half of life.

An apartment in a town ship with the balcony facing the play area, you on a coffee sitting opposite to your loved ones, thinking about how the life has transpired. Glowing bright with satisfaction of thought that well we are ready to face any eventualities even though both are retired.

Well many would die for this emotion. It is easy to imagine but tough to achieve. Welcome to Financial Planning. I am sure from the above you would have now understood what is financial planning and the need to have a proper planning done.

Time and Tide wait for none is a famous idiom and so is life. Before you blink and open your eyes, there is a good chance that we would have completed most of our career. Moreover, a frightening trend with the current generation is to spend more in the initial days with the belief that money for post-retirement period can be saved in the latter half of the career. This is very dangerous, as we never know what destiny has in store. Add to those the standard inflation we are left with nothing much in hand.

Financial planning thus becomes one of the most important aspects of one’s life.

In short, Financial Planning is those steps one takes to achieve their financial goals. These goals vary from person to person and is set taking various aspects into the purview. However, once the goals are set, the individual needs to derive the ways, in other words steps to achieve the same.

Some of the basic steps in financial planning are:

a.To identify the current income and assets.

b.To identify the liabilities such as loan, EMI or any other such expense.

c.To take into account one’s expenses over a period.

d.To understand the various investment options and one’s risk appetite.

e.To also identify informal social obligations towards Family, Friends.

Financial planning is a routine that needs to be adapted into one’s lifestyle. In the upcoming articles, we shall delve deep into the various aspects of financial planning.

In the meantime, anyone interested, request you to set a target that you would want to achieve financially by the time you retire.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: