So first lets discuss What is Financial Planning? Financial Planning is a strategy to achieve your financial goals and to plan your future plannings in a strategic manner.
Now the question erupts why it is necessary to plan it?
With the increase in modernity, now people wants to be modern, want to wear branded watches, shoes, dresses, and want to adapt a lavish lifestyle like any other celebrity. The thing is that money is less but dreams are big.
Students wants to study abroad, want to buy a new model of everything even if they has the old one.
So that’s where you need to plan for your Financial expenses through a Financial planning.
Financial Planning process step by step:-
- Check your current Financial Status, so you can decide what you have to save and invest.
- Decide your goals, it could be a new car, kid’s education, buying home, foreign trips, marriage, etc.
- Check the sources where you want to invest such as Mutual Funds, Debt, Fixed Deposit, Equity, Liquidity, Recurring Deposit, PPF, etc.
- All these sources depends on risk, return, growth, savings, etc.
- Select your source and invest to achieve your goals.
So this is how you can plan your goals and my advice is to always invest for long term goals, it will give you better returns.