We have all witnessed  the Telecom revolution, the Industrial revolution and the Internet revolution. What are the change in these sectors? Well, there is a drastic change, one which brings many new and exciting solutions to our everyday life.

Similarly, in the personal finance and investment space, what’s revolutionized the modern individual/ family’s financial life is the concept of FINANCIAL PLANNING.

Financial planning is a systematic approach whereby the financial planner helps his clients to maximize his existing and future financial resources by utilizing financial tools to achieve his financial goals.

Financial Goals can be achieved by having the following planned and executed:  Risk (Insurance) Planning, Investment Planning, Tax Planning, Retirement Planning and Estate planning.

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So let’s jot down the practical implications of the financial planning process, once done and followed up and reviewed relentlessly:

  • Sets and prioritize your life goals.
  • Take stock of your existing finances and the role they will play in meeting the goals as also whether the current set of investments are the right ones for you.
  • Identify the right investment instruments including how much insurance and/or a contingency reserve should you have to take care of your dependents.
  • Track your investments and set milestones of execution and review
  • Make your money grow at a faster pace – given that the right asset allocation is determined by various process driven activities like the Risk profiling, Current portfolio, Current financials, etc
  • Give a positive restructuring of your loan portfolio, also boosting your file to make it ready to get loans at best rates going forward.
  • Reaching a stage of financial Nirvana: generally achieved by knowing the why, where and for what of your money – now and in the future.
  • Avoiding bouts of pitfalls or losses. Arising out of a common human trait: Greed.
  • Timely exiting of your investments or profit booking – as the investments are more goal centric rather than returns centric.
  • Always have a financial friend – a financial planner on your side, one who understands you and gives an unbiased advice of what’s required for you and not what’s good for his pockets.  In other words it’s like having a “Family CFO” on your side.

Below is the Pictorial representation of the Financial Planning Process:

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Let’s just not imagine a financially stress free life …lets live it by implementing Financial planning into our lives, it will take care of all aspects of what’s needed for your present and future…

Author: Mr. Nirmal M Jain | Mr. Nirmal M Jain is a Co-Founder at HappyWise Financial Services. He has over 15 years of experience in the Financial Planning Sector. He has been a mentor to several people, and has helped them to understand investments, stocks, mutual funds, financial planning, personal finance and above all his favorite term “The Power Of Compounding!”.

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