Financial Planning for a better life

In today's world and with the advancement of electronic media and the internet, there isn't a shortage of access to the best and the prettiest things in the world.

If, for example, you're enthusiastic about performance automobiles, Google returns millions of hits of Audi, Mercedes, BMW and sorts in a fraction of a second, and the cars are right there on your screen, to lust at, to be wished to be driven, to be owned. If you're a gadget freak, a bookworm or love fashion, then millions of e-commerce sites and apps are prepared to tempt you to want their products, even force you to buy things you never thought you needed in your life. The best part is, you don't even need to step out of your house/office to visit a physical store to be mesmerised and long for them, they are always with you, in your pocket, on your desk or on the palms of hands.

The plight of our modern day lives is such that we aren't content with what used to be enough in the yesteryears, a happy family, a comfortable home and a hot meal when we were hungry. Now, we demand more from life. Faster cars, bigger homes, faster gadgets, flying business class - luxury in one word. We are so obsessed with luxury that our happiness depends on it.

Yet, this is the way of life in today's world. Luxury items do make an impact on our lives, they do help us travel faster, make us look good and even makes our work easier. But, all this convenience comes at a price, price itself.

The best things in life don't come cheap, they either demand your time or your money. So, the best way to be happy and avail all this "convenience," is to plan for it.

Financial Planning is not a product but a process which helps you in making conscious sensible decisions about money.

Life is full of uncertainties. You love your family. Everyday you think of ensuring a healthy prosperous present & future for your family. You want to scale new heights everyday. It involves money & consciously/subconsciously you think about managing money. It could also be about meeting current commitments starting from day to day expenses to education loans to medical bills.

It could be about your future, like how to protect your family needs should you fall sick or about your children's educational needs or about adding more to your already existing assets. When you think of all these together it means that you're thinking about Financial Planning.

Essentially financial planning involves:

  • Determing goals of life.
  • Penning down the means & assets that you have.
  • Evaluating current financial health.
  • Creating & writing down a possible path including investments.
  • Implementing the plan.
  • Monitoring the implemented plan.Reviewing its performance & checking if it is leading to your desired goal.
  • Making necessary alteration in case of unsatisfactory performance of the plan or in case of certain exigencies.

You can do all of the above yourself.

But sometimes, either you are too busy with life or you could be confused. It might also, so happen, that you are not sure of your financial goals. You only know that you want to live a better life but you don't know how.

Here comes the role of a financial planner & analyst who, through the process of interaction with you & analysis of financial information as provided by you helps you in organising your finance so that your dreams are fulfilled. He/she can help you in identifying ways to spend differently. In the end, your life is much easier & less stressful.

The process of Financial Planing involves :

  • Determining the realistic goal of your life & segmenting it into short, mid & long term.
  • Obtaining financial data about you & your family including spending patterns.
  • Analysing your financial health.
  • Writing down a plan which would help you to achieve your goals.
  • Ways to increase your income through tax-planning & right investment decision.
  • On periodical basis review if the implemented plan is working in the desired manner. If not identify the deficiencies & guide it back to right track till your goal is achieved.

The above steps might look easy on paper but, they require expert knowledge about current financial scenario and best investment practices. The job of a financial planner is to ascertain your financial position and guide you towards the right path. Sometimes, all you need is a friendly advice and a nudge in the right direction.