Life by itself is compared to a vehicle, you are the driver of the vehicle and the objective of the vehicle is to smoothly reach various destinations known as Life Goals. Financial Planning is the process of developing a personal roadmap for your financial well being considering various aspects such as your income, your assets, liabilities, your risk appetite, taxation, etc.
The output of the financial planning process is a personal financial plan that maximizes your basic resource, money to achieve your goals, in the best possible manner, over the time period required to achieve your goals, while taking into account the twin villains on the road, namely, inflation and taxes.
” In short, financial planning is the process of systematically planning your finances towards achieving your short-term and long-term life goals. “
Right through time, ambition has ruled the world, whether it was to conquer to conquer the earth or the sky. Most of us humans nurture dreams and ambitions of owning a bigger house or the latest car in the market, the latest gizmos in the technology world, exploring the world, giving our children the best possible education, a blissful and happy retirement, etc. Basically, these dreams and ambitions are our lifestyle goals.
|Example of Planning|
|Short-Term Goals||Long-Term Goals|
|2 BHK apartment||Daughter’s Higher Education|
|Buying A bigger Car||Retirement Corpus|