When one thinks about life, it is the dreams and goals which one needs to fulfill, which comes first as a first thought. Financial planning is the process of effectively managing your finances so that they can be used to fulfill your dreams and reach your life goals with ease and convenience. A life goal can be small or big, which needs short term or long term planning, but every life goal needs planning to finance the fulfillment of such a goal. The basic examples of a life goal which needs a financial plan are:
- Purchase of home for family
- Fund arrangement for child education/marriage
- Retirement corpus building
- Wealth creation
In order to stay on track and ensure timely fulfillment of life goals through the journey of life, a meticulous financial plan is needed by an individual. A proper financial plan gives direction to a person’s financial decisions and ensure stability in life as it paves way for uncertainties in life making you more prepared to fulfill your life goals.