THE IMPORTANCE OF FINANCIAL PLANNING LONG TERM GOALS !




THE IMPORTANCE OF FINANCIAL PLANNING LONG TERM GOALS !
THE IMPORTANCE OF FINANCIAL PLANNING LONG TERM GOALS !



Table of Contents

* Why is financial planning compulsory ?

     * Emergency situation
     * Long term goals
     * Retirement 

Financial planning is a process that allows you to manage your finances in a way that they can meet your life's goals.

Financial planning is a process, not a product. This is a long term way of managing your finances wisely so that you can full-fill your goals and dreams, so that you stay away from worry about the financial constraints arising inevitably in every phase of life.

To make a good financial plan, goals must be met. So firstly set your goal because you must know yourself how much you will need in the future. A good financial plan will help you answer three basic questions:
  • Are you today? - Your current financial status, earnings and responsibilities.                                   
  • Where do you want to be tomorrow - Your short term and long term goals that will require financing.                                                                                                                                                   
  • How do you meet that goal? - What kind of investment should you choose to achieve your goals and what plan you should deploy.

WHY IS FINANCIAL PLANNING COMPULSORY ?

The plan is one of the greatest characteristics of humans. When it comes to money, then the plan needs to be solid because there are many things that can affect your financial plan.

 As Allen says, 'Failing to plan is planning to spread', that is, if you do not plan your future, they will definitely get a failure.

 Fulfilling the needs of the future and improving the quality of life depends on today's plans. Therefore, there are some factors below why the financial planning should:
  1. EMERGENCY SITUATION:
Prevention is better than cure and when it is about money, it is better to be prepared than regret. Financial planning involves being prepared for such situations without affecting the primary objectives.

Providing protection to your family is an important part of the financial plan. In addition to mutual funds and insurance in your finance planning, there should be enough money for emergency as cash or bank balance, generally it is called contingency fund which should be about 3-4 lakh rupees for any 6 persons It takes one to two years for the family and to celebrate it.
  1. LONG TERM GOALS:
Some goals in life are very important: a family car, your home, your children's education or their marriage; Completing these needs is a responsibility and dream too.

It is better to make quick investment plans because investment options can earn higher returns during the time period.

 From now on, investing your money will make it easier to achieve such long-term goals i.e. the time of investment is the right time when you start earning, not 25-30 years or when you have children etc.
  1. RETIREMENT:

A common objective of a comfortable retired life while fulfilling your family goals is.

If you are planning for retirement after more than 10 years, then you should plan to invest now because compounding magic is experienced when investing for long periods of time.

Financial planning helps you to make enough funds for retirement, when the expenses continue, but the income starts to dry up.

 It is worthwhile to consider investing for your life's goals. For everyone, income on retirement is a major concern because normal expenses are also applicable, but there is no source of income, due to this, planning for retirement in financial planning will always be the most important.


thanks for the time .

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