The life of common man revolves around some financial goals which he/she wants to achieve. Buying a house, Comfortable retirement, children future planning and their marriage are those primary goals which all people would like to see through. However, the limited resource that one has does not allow allocating money towards all of these, which impact some of the goals.
Hence, there is always a need to plan all your finances well in advance so that it is easier to draw a roadmap for your financial well-being. Financial Planning is a true process by which you create a blueprint for achieving your life goals. It helps you to bridge the gap between the funds required and resources you have.
To go through the entire process, you need to first identify your goals and quantify them. Then analyze current financial situation and utilize your limited resources in meeting the financial goals. Changes should be made in your cashflows, if required. Once implemented, review it periodically to accommodate any change in your financial situation during your lifetime.
However, many individuals find it difficult to implement a financial plan. Primary reason for this is the change in lifestyle recommended by their planners. Even if it gets implemented it loses track in between and the entire objective of creating a financial plan becomes useless.
Financial Planning strategies recommended by most planners are not new innovations but mostly follow the basics of personal finance, which if followed rigorously, can help immensely in achieving life goals. Listed below are 10 basic strategies (your checklist) which drives success story of any financial plan.
Financial planning is all about making good financial choices. That’s why it’s something you should do over the course of your whole life – even before you have a lot of money saved. In fact, it’s one of the most important things you can do for yourself and your loved ones.