Financial Planning

Financial Planning

Financial planning is the process of estimating the financial needs of a person and implementing a comprehensive plan to meet those financial needs during his or her lifetime through investment. For instance, the birth of a child, education, purchasing a house, marriage, meeting emergency situations like an illness, to meet the impact of an accident, death, or natural calamities like flood, etc.

Benefits of Financial Planning

Financial planning helps you set and reach your goals. Financial plans help individuals create and set goals to work towards. Goals are what give people direction and purpose in their lives. When individuals have clear goals in mind, it gives them something to focus on.

Financial Goals

Your financial goals can range from acquiring assets, and saving for emergencies as well as making investments for your future financial security. The financial goals of an individual can be categorized as below:

  1. Basic financial goals (food, clothing, shelter, etc.) 
  2. Secondary or advanced financial goals (education, house, marriage, etc.)
  3. Retirement planning
  4. Estate planning

Individuals can use a variety of investment, risk management and tax planning strategies to meet their financial goals. These goals change over an individual’s lifetime and accordingly the financial plan should be reviewed on a regular basis for any modification as per changes in the circumstances