8 Reasons to make a financial plan
July 18, 2017
Always be prepared: Suppose you save 5% of your salary or Rs 10,000 every month. Suppose your after-tax savings consist of Rs 1 lakh. You are saving this to buy your own car three years later. What if a sudden medical emergency crops you, and wipes out your savings? Not only does it affect your wealth, but it could also fall short in an extreme case. Marriage plans of your only daughter?
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Helps decision-making: Financial planning takes stock of your present as well as your future. It thus facilitates decision-making. Take the above example, if you had a proper financial plan in place, you would never be short of funds for your daughter’s marriage or for buying your car.
Always be prepared: Suppose you save 5% of your salary or Rs 10,000 every month. Suppose your after-tax savings consist of Rs 1 lakh. You are saving this to buy your own car three years later. What if a sudden medical emergency crops you, and wipes out your savings? Not only does it affect your wealth, but it could also fall short in an extreme case. Marriage plans of your only daughter?
Optimum use of resources: A financial plan also helps you form a strategy. This helps you allocate your resources to different assets.
Better standard of living: With a realistic financial plan in place, you will never be short of funds. Liquidity will rarely be tight. All those month-end woes? Forget about them.
Expert advice: Financial planning if often undertaken with the help of an expert. It is wise to seek expert advice from professionals. If not, you could end up with poor financial information and decisions that can prove disastrous. In the case of the working individual, insufficient or random saving for retirement can lead to a poorer lifestyle later.
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ABove shared views are Personal Views of author and he hold NO responsibility of any information provided or any authenticity or validation or of any damamge harm caused due to such information. Discretion of reader and apllication of reders own mind is highly advised.
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