Financial Planning for Today's Needs
Over the last few years, financial planning and personal
finance have emerged as buzzwords of sorts. Newspapers, magazines,
television channels and just about every one under the sun seem to be
talking about the importance of financial planning. So what is financial
planning; more importantly, does it merit the attention that it is being
Financial planning is a process through which an
individual can chart a roadmap to meet expected and unforeseen needs in
life. Simply put, the intention is to take necessary steps to ensure
that the individual is equipped to accomplish what he has set out to
achieve and is prepared to deal with contingencies as well.
And yes, the importance of financial planning (especially
in the present scenario) cannot be overstated. Among others, two factors
are responsible for the same, respectively inflation and changing
Principles of Financial Planning
At its core, financial planning is not a very difficult
task. All it takes is discipline and religious adherence to the
principles of financial planning.
Discipline has a part to play at every stage, from
setting objectives to actually executing the plans that are meant to
achieve those objectives. In fact, an adhoc approach while dealing with
finances is one of the major reasons for the financial distress that
individuals find themselves in.
Setting objectives, investing in line with one's risk
appetite and asset allocation are some of the fundamental principles of
In conclusion, it can be stated that achieving financial
nirvana isn't as difficult as it is often made out to be. To get there,
all one needs to do is, stick to the basics of financial planning.