Realise Your Dreams With Proper Financial Planning

We all have dreams to achieve. Dreams are nothing but long-term financial goals & how we want to achieve it depends on us. Your goals can include buying a home, saving for your child’s education, going on a world tour and planning for retirement. But, do we really have a strategy for achieving these goals?

Crafting a financial plan is essential to make the most of your income and investments to achieve the lifestyle and goals you desire.

What is Financial Planning?

Financial Planning is the process of managing your money in such a way that you can meet every eventuality. It involves creating a strategy or plan to meet your goals given your current financial situation and future expected earnings.

Financial Planning helps analyse and answer the following questions:

  • Where do you stand at present –  your current financial condition
  • Where do you want to be in future – your future financial goals
  • What you must do to reach there – a financial strategy comprising your asset allocation that will
  • help you attain your goals

The Financial Planning Process

The Financial Planning process typically includes the following steps:

  • Assessing your current financial situation
  • Determining your risk profile
  • Identifying your financial goals
  • Determining an Asset allocation
  • Preparing an Investment plan
  • Implementing the Recommendations
  • Monitoring and Reviewing the Plan regularly

Getting Started with Financial Planning

Financial planning begins with analyzing your assets, liabilities and cash flow, current insurance coverage, investments and taxes.

  • What you own – your assets, savings and investments.
  • What you owe – your loans, credit card bills and other bills.
  • What you earn – your income through various sources.
  • What you spend – your expenses on living essentials, taxes, insurance etc.

A key step in financial planning is determining your risk taking ability through the financial decisions made by you in the past and your attitude towards financial risk. After factoring in

your risk tolerance and investment objectives, a financial plan determines what percentage of your investments should be put into various asset classes such as debt, equity, or gold in order to achieve your financial goals.   This diversification of assets across asset classes (asset allocation) is a vital component of your financial plan. Further, setting and maintaining your recommended asset allocation is the key to the success of your financial plan. Executing the recommendations of your plan with discipline and reviewing your financial strategy periodically in line with changes in your life and goals will bring long-term results.

financial planning


With proper financial planning you can be financially equipped for anything that life hurls at you. All you need to do is follow through on your financial plan and make it work. By doing this, you beat the odds of achieving your objectives without having to compromise on other priorities in life.

Arriving at a financial plan is a complex and highly personalized process taking into account your unique financial needs and goals. Seeking the help of a qualified financial advisor/planner may be a smart idea to achieve this.

Categories:   Finance


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