Importance of Life Planning and Financial Planning in India
Life Planning is a logical process for optimum utilization of your all the resources big or small, present or future for the goals of family, with an eye on the regulations and market conditions. Family is the end beneficiary of Life Planning.
Basics of Financial Planning
Financial Planning is the process of meeting your life goals through the proper management of your finances with your family values. Life goals can include buying a house, saving for your child’s higher education or planning for retirement. The planyourworld’s Financial Planning Process consists of a few steps that help you take a ‘big picture’ look at where you are currently. Using the process, you can work out where you are now, what you may need in the future and what you must do to reach your goals. The process involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan for how you can meet your goals given your current situation and future plans.
The Benefits of Life Planning and Financial Planning
Your present is the result of planning you did a few years ago, Financial Planning provides direction and meaning to your financial decisions. It allows you to understand how each financial decision you make affects other areas of your finances. For example, buying a particular investment product might help you pay off your mortgage faster or it might delay your retirement significantly. By viewing each financial decision as part of the whole, you can consider its short and long-term effects on your life goals. You can also adapt more easily to life changes and feel more secure that your goals are on track. Financial Planning makes you visualize and analyze the effects of your financial decisions on your life.
Who is a Financial Planner?
A Financial Planner is neutral or unbiased person who uses the Financial Planning process to help you figure out how to meet your life goals.
The Planner can take a ‘big picture’ view of your financial situation and make Financial Planning recommendations that are suitable for you. The Planner helps you identify and quantify your needs in life with helping you set priority number for each goal in life. The Planner can look at all your needs including budgeting and saving, taxes, investments, insurance and retirement planning. Or, the Planner may work with you on a single financial issue but within the context of your overall situation. This big picture approach to your financial goals sets the Planner apart from other Financial Advisors, who may have been trained to focus on a particular area of your financial life.
Can you do your own Financial Planning?
Of course you are the best who knows everything about your situation, your likes, dislikes and all the aspects of your life. You can do your planning with the help of some websites, magazines, friends and other free or paid research services. You should plan with us if: A. You find yourself not competent enough in every field like Fixed Investments, Equity Investments, Commodity Investments, Life Insurance, General Insurance, Legal, Taxation, etc. B. You don’t find the resource to know about all the above mentioned fields. C. You need Logical Plan for your self – without biases. D. You want to focus on your career and you need a planner to take care of your affairs.
Don't oblige people by investing money
Doctors are busy because of their profession and have very limited actual trust worthy people. One thing is for sure that money don’t give you friends, by obliging Bank Manager, Manager or Agent of Insurance company, Mutual Fund Agent by buying a policy, SIP or investment you can get anxiety only. Invest for the need of your family and give proper time to plan your life. Anything which is being sold to you cannot be good for you. If your situation requires something in financial world you will not see people pursuing you to sell as these are automatically sold, most of them are available online. Buy things which are suitable for you and your family. Buying on obligation may erode your capital in long run.
We tried to share some of the practical experiences which we got while planning for doctors.