You may find financial planning complex or may have heard “Financial Planning” for the first time or may be confused.
Indeed, it’s pretty simple, financial planning is a process of charting and following a roadmap from where you are today and where you want to be 10, 15, 20 years from now in your financial life.
Indeed, It’s pretty simple…
Financial Planning is a process of charting and following a roadmap from where you are today and where you want to be 10, 15, 20 years from now in your financial life.
CAN YOU IMAGINE RUNNING A MARATHON WITH NO MILE MARKERS, UNNERVING RIGHT?
We are visual animals,we like to feel like we are making progress.
When you run a marathon, every 1 Kilometer you have a marker which gives an indication to your brain that you have completed 1 km, 2 km, 3 km till the finish line.
Similarly financial planning also helps you visualize your exact progress, monitor and modifications required towards financial goals.
Vision, crystal clear vision of your financial goals and the process of achieving that goal is called financial planning.
WE USUSALLY HAVE ABSTRACT STATEMENT
“I want to be rich”,
But how much rich?
Within how many years?
How do you define rich?
For me rich is about having 10 crores on 31st Dec 2030 what about you?
You have no clue where you want to reach and days,months and year passes by and you remain where you are, no progress at all.
Not having financial goal is the biggest problem in your life and the reason you are not rich.
Since you don’t have a goal, you don’t have a plan without plan there is no direction and without direction there cannot be execution.
LET ME HELP YOU TO UNDERSTAND ABOVE STATEMENT WITH AN EXAMPLE
Imagine you went to the nearest railway station, at the ticket counter you asked for a ticket.
Opposite person : “Kahan ki ticket du” (For which destination should i give you ticket)
You : “Kahi ki bhi de do (Give it for any destination) He will surely not give you the ticket because how the hell he would come to know where you want to go. This is your problem and financial planning process helps you reach where you want to go Well thats enough of example and motivation”