A sound financial plan that is built on the foundations of needs and requirements of an individual or a household is much more beneficial than haphazard planning without carefully comprehending the needs. Planning is a long-term process which needs various inputs with regards to various aspect of one’s finances and in order to multiply the efficacy of a financial plan, it is important to listen to an individual, identify his/her key concern areas, measure the financial profile, identify life goals and devise an effective financial plan. A careful analysis of need would require answers on the following financial aspects of an individual

Wealth Creation objectives

  • Do you plan to accumulate wealth? Do you have goals for it?
  • Is your current investment aligned to your wealth accumulation goals?
  • When do you need money in life and for what reasons?
  • What is your approach towards risk tolerance, equities, diversification and market volatility?

Evaluation of present financial situation

  • Are the life goals well defined?
  • Are they well documented or written?
  • Is there a sense of stability and security in the current financial situation?
  • Is the cash flow tracked regularly?
  • What is the current investment status?

Protective objectives of life

  • Do you fear the uncertain events with respect to your life goals?
  • Are you adequately insured?
  • Are you prepared for an increase in expenses due to emergency situations in life?

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