The Basics Of Financial Planning

By Author: Vamsi Krishna
Total Articles: 27
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Financial planning means exactly what the name suggests. You need to allot your finances according to each need that you already have or may have in the future. Financial planning ensures that when you need finances for a particular requirement, like for example, your child’s education, you don’t need to look beyond your means. You won’t have to struggle to manage, and will have all your funds within your control. Financial planning includes your expenses, paying off your debt and even your investments for growth.

To be a successful financial planner you have to start early. Going on delaying the task and allowing your funds to be spent in a haywire fashion make the financial planning and analysis process a complicated one. There are several categories to look into when you’re trying to chart your funds. While every category is going to affect the other, it’s smarter to plan individually as well.

The first step in financial planning is setting your goals. Make your goals realistic so you can set a financial situation that applies to your goals. Having realistic goals also ensures achievability in the ...
... future. Financial planning for this process includes making a list of your debts and assets based on your current situation and projecting the future.

The second step is risk management. Financial planning for risk management includes making sure your assets are protected from any loss. Buying insurance for everything is the best thing for this step as it provides you with a lot less worry and a financial back up for every asset. The next thing to take care of in terms of financial planning and analysis is tax planning. You have to know exactly how much tax you’re liable to pay and how many of your assets provide you tax benefits. Carrying out the financial planning process in advance ensures you can handle your taxes in the best possible way.

Financial planning for the retirement is another very important aspect. You should set a certain amount of money aside for the future so you can continue to live in style. Being a successful financial planner also means that you have to decide how much you’re going to invest in. Chart your funds out effectively and live without any money-related problems. Financial planning and analysis is important for everyone, creating a good plan ensures a wise flow of funds.

Author Bio

Ritish Kumar is a finance enthusiast and a keen observer of the Indian share market. In this series of articles, he talks about investing in stock market and staying profitable. Financial planning