Just like how a house needs a strong foundation to withstand the elements, you need to have a solid financial foundation. Creating your financial foundation requires that you have the basics covered
Financial Planning is the process of meeting your life goals through the proper management of your finances. It involves the process of assessing your financial situation, determining your objectives and formulating a plan to achieve them. Financial Planning helps in taking control of your finances it assists you in curbing sort-term temptations in favor of more important long-term goal. Financial planning provides the following benefits:
-Helps determine your financial goals
-Projects the future value of your current goals
-Helps Budget your expenses and build cash flows
-Projects the savings required to build a corpus to realise your goals
-Recommends financial products as per appropriate asset allocation
-Seeing the future with a clear vision
-Ensuring discipline
-Giving you a direction
-Improving your financial decision making
-Assessing your risk tolerance develop an asset allocation strategy
-Helping you reduce taxes
-Safeguarding you and your family against financial crisis in the event of death or disability
-Planning for retirement or children’s education and marriage expenses
-Tracking investment performance with respect to set goals.
-Providing peace of mind
Significance
From budgeting household expenses to creating a savings account for retirement funds, a strategic financial plan can make it easier for individuals or companies to maximize their cash flow and make solid investment decisions. Allocating and managing money effectively often requires the assistance of a trustworthy financial planner; financial planning services help people gain an accurate assessment and understanding of their financial standing so they can make the best decisions when allocating their financial assets.
Considerations
Some banks and financial institutions offer financial planning services at no cost to customers or members; this can be a valuable option for anyone interested in managing their money and assets more effectively, creating a stock portfolio or those interested in investing in money market funds. Financial planning consultations are typically free of charge, and private firms may charge a fee for ongoing services.
