6 mistakes Doctors must avoid in Financial Planning in India
Evaluate your life
Today your present is the result of the plan, you did some years ago. No matter what is your age, your present situation, people, surroundings, and career are the result of your previous plans. Now where are you going -? Have you asked this question to you, now your age is different, your needs are different. In last some years or some time, have you checked, what you want from your life? You work hard and long hours day and night compromising with your health – why?
When you started your career or the journey of your life you must have thought some examples and you visualized yourself in a situation, that you achieved today or you might be reaching by some time in future. Will you leave your journey now? Let’s ask a question – what is success? Success is progressive realization of your dreams or goals; it’s not about stopping at a destination because life never stops. When you plan your world, you need to visualize your life in future. This can be done by asking a few questions to you.
- What is your age?
- What is your family’s situation?
- By when you are visualizing your expected world?
- With whom you would like to celebrate your success?
- Which home you will live in?
- Where would you be working?
- Where will your children be?
- Would you still like to work hard and long hours?
- If you take leave from your work, what would you be doing, will you follow your passion?
- Would you be financially independent or you would say,“ I have established my kids and they will care me”?
If you are ready with the answers to these questions, you are ready for planning your life.
Identify your goals
Everyone has his/her own needs; you wear your own power spectacles only, because it is customized and personalized for you. You must be aware of the nature and expectations of your near and dear ones. You don’t want to miss a single opportunity to make their life better. You know them personally – their favourite food, their favourite television channel, their style of clothing. As you are a responsible person, are you aware of the expectations of your loved ones that they have from you? You should know a few questions to answer.
- When do you want to stop working for money?
- When will your better half stop working?
- How much you need in today’s Rupee value for your kid’s education?
- How much you need in today’s Rupee value for your kid’s career?
- How much you need for kid’s marriage?
- How much asset you need to retire with dignity with your spouse?
- How much risk you have by the time you have sufficient wealth to support your family?
- Which type of home you want?
- Most important – when your boss is planning to make you retire from your company?
As couple waiting to retire
- When will you stop working?
- What will you do after you take leave?
- What is your passion?
- Would you like to work for money also?
- Which home you will keep for you?
- Where are your kids at your seventies?
- Who are the dependents?
- How much you need for monthly expenses with medical bills, domestic help, vacations, convenient utility bills?
- Most important when your boss is planning to make you retire from your company?
You need to draw the things you want in your life. A financial planner can really help you plan your future.
Fix your date and check your resources
Once you have 60 to 70 percent of the answers with you, you need to put a date on your needs, by which you are supposed to achieve the destination. Once you know the date or year, its the time to evaluate your own existing assets. Most of the families suffer because of the collection of wrong assets as life insurance policies, fixed deposits, credit cards, and luxury cars at the start of career, luxury home and many more. You should check their usefulness or value addition in your life, for the purpose/objective you have now. You can check these at planyourworld.org or at the time of financial planning it is always checked. You never come to know that in most of the cases these wrong assets make you work longer and harder because they eat up your hard earned money. We don’t apply pain killer for kich-kich in throat and a cough syrup for pain, we don’t buy face cream for shoes but we buy assets in this manner
Evaluate your own strategies
Once you know your resources, you should check the value and appropriate use of your strategies you made before this mental exercise. Which direction you were heading to, with your previous strategies? What is the value of your strategies now, do they need to be changed or they will still serve the purpose? An experienced financial planner will be helpful in preparing strategies for your life. Nothing can be planned in isolation so you need to have data and research of many domains to prepare your customized strategies of your world. Today the situation is complex and everything has been commercialized, it is not possible for an individual to focus on his career with competition searching for an opportunity to win, and to look after on his/her own financial world alone. If you want to do it on your own, you need to know about everything in Life insurance, General insurance, Banking, Loans, Gold, Silver, Shares, Bonds, Monetary policy, economic policy, Mutual funds, Pension plans, child plans, Retirement benefits – PF, Gratuity, NPS, PPF, Properties and Law with Taxation. Most importantly you need to know the impact of small changes of these on your life and life situation. You need proper feedback and support to prepare and follow your strategies of life. You should always avoid saving a Rupee by losing a thousand. In life prosperity is important than money only. Only balanced life with worldly achievements can be a mark of success. There are many film stars who made money only and ended their life without their core inner circle of family. It’s the time to plan your world.
Enjoy financial planning!