Financial
Planning : Is it relevant for you..?
Whenever I conduct workshop on financial planning or meet the client. It
is very common doubt inside the client’s mind whether the financial planning is
so important for them or not. In our country, we plan everything but not our
finance. We are the largest saver country in the world. In fact we have great saver mindset but most of us don’t
understand or underestimate the need of financial planning. A common myth exist
among the investor that it is only useful for only rich and elite class person.
Today we will try to find out for whom the financial planning is important.
- If you don’t know where is your income going every month and always wonder
about your expenses then you definitely need to make a budget for your
income and expenditure. It is very basic and vital setp towards making a
financial plan. Impulsive buying and lack of budget planning may be proved
very costly for your long term future goal.
- If you are in the trap of debt and your liability is increasing due
to loan interest amount you pay then seriously you should make a proper
plan to get out from various liabilities. For the blind race to lead much comfort
life style, you often use the facility of credit card, personal loan and
bank overdraft facility. These all loans lead you towards a serious
financial mess. A financial plan will help you to come out from financial
mess.
- If your investments are scattered and you are not sure that whether it
is right investment or wrong then financial planning for you. Many times
we do investment on the recommendations from agents, relatives and friends
without knowing the product’s risk and return ratio. Keep in mind each
investments have always some degree of risk. A financial plan provides you
consolidated investment statement and you can analyze it time to time in
very easy manner.
- If you have a multiple life insurance policies and you are paying a
hefty premium for those policies without knowing the expected return and
sum assured then you must need of financial plan. Most of the people are
underinsured in our country and people must know the about adequate insurance
amount what they need. It is very important to know that how much life and
medical cover you need. A financial planner help you to determine all
these need based on your provided information. Insurance also is the vital
part of any financial plan.
- If your major investment in the particular asset class and you are
not sure whether it can help you to achieve your particular goal then you
need a financial planner who help you to achieve your future financial goal
through diversified investment portfolio with proper asset allocation. Asset
allocation may be differ for person to person and you need to know which
type of asset allocation you required to achieve your financial goal.
- If you don’t have habit to regular investing then you must need a financial
plan. In every success goal achieving story discipline and determination
is the key element. By create a financial plan with the help of expert and
follow that plan religiously is very crucial to achieve your long, medium
and short term goals.
Now after reading the above mentioned pointes it has become clear that
financial plan is like a road map to achieve your dreams and desires to lead a
happy and prosperous life. However, many of you have not any idea how to invest
and where to invest or you may not have sufficient time to make financial plan
and track your investment portfolio then you should must hire a expert planner
lead to stress free life.
For more detail and any
other query related investment, you can contact me through my email
Warm regards,
Arvind Trivedi
Certified
Financial Planner
