What Would You Like To Do With Your Extra Money?
·
Acquire degree from international country?
·
Memorable Holiday Getaway?
·
Procure A Most Happening Property?
·
Boost up Your Lifestyle, Drastically?
·
Commence A Most Profitable Business?
·
Improvise Living style Of Your Family, Children
and Relatives?
·
Actualize a pleasurable Retired Life?
Probably you may do all of these or may be most of them. So
this is how we do
financial planning inIndia. We make a wish list and then gradually we tries to accomplish each
of them with extra money.
Process of managing your money smartly with the intention to
acquire your financial goals and wishes is called as financial planning. It’s a long process that involves lot of time,
patience and wise decision making skills. In other words, financial planning is the procedure of categorizing and judging
your economical aspirations, making a priority list of them and finally
accomplishing these goals on the basis of priority with a comprehensible, centered
and a tailored financial strategy. Proven Financial
Planning can assist in achieving better wealth and financial protection as
well, whereas unproven or inappropriate set of plans can be catastrophic to
your financial health.
Let us understand the concept of Financial Planning in India with example, suppose you are suffering
from a mild fever. What you will do? Most probably you will take a self
prescribed medicine. But when you did not get relief from self prescribe
medicine, most probably you would discuss it with your colleagues, neighbors
and friends. They again will suggest you some pill and say this one is a good
medicine you will get instant relief and so on. Now you will buy same medicine
and eat it. Even now you are not able recover and it persists you may go to the
local pharmacist and seek his advice and ask him to prescribe some stronger drug.
But what if it prolongs still? Not only mild fever, but other impediments begin
arising to you? Now finally you will give up and will go to an experienced doctor.
You might get to see a magic by eating only one dose of Doctor. Hence the moral
of story is maybe if you had visited to the doctor in the initial phase of your
sickness when you were suffering from only mild fever, in place of being in poor
health for one week your health might have recovered better within just 2 days.
In the same way, looking for the financial solution and services of a certified Financial Planner is just the same. But people in India yet inquire about disease and look for advice from the druggist
and chemist equivalent to agent, or a friend, or a neighbor, or a relative or a
colleague for their richly deserved savings which may result grievous.
Youngsters of today’s generation do not plan their finances
- some youths don’t plan because they are not aware of its advantages, some
young professionals believe that they do not need financial advice at the first
phase of their careers and some without getting it assumes that others getting
financial solution from expert is an expensive
affair hence they can’t afford it. The fact is, as soon you will start
investing the more you will be able to accumulate and can fulfill your
financial dreams and goals. Your money grows on the "compounding" or
the "snowball effect" principle.
To conclude we can say
Financial
Planning is a continuing long term process concerning to saving management,
cash flow planning,
insurance planning, retirement
planning, tax planning and property planning.