Financial Planning - A Road Map to a Secure Financial Future

Would you leave on a trip to a new destination without a map? What if your destination is a successful financial future? Without a map, would you know how to get there?

Financial planning provides a road map for your financial life. It can make the journey less stressful, more fun, and more successful. And, you can start right now - even if only a few steps at a time.
In today's uncertain economy, financial planning has become increasingly important. With an overwhelming number of options for saving and investing, managing your finances can be difficult. Creating a financial plan helps you see the big picture and set long and short-term life goals, a crucial step in mapping out your financial future. When you have a strategy and a financial plan, it's easier to make financial decisions and stay on track to meet your goals. Working with a CFP CM professional can secure your financial wellbeing and give you peace of mind and help you reach financial planning success. Know more in detail about fee based financial services and top mutual fund advisors in india.

"Someone's sitting in the shade today because someone planted a tree a long time ago." (Warren Buffet)

As a financial life planner, my underlying assumption is that planning is a "good" thing. Planning is widely acknowledged to be a pre-requisite for business success. However, Benjamin Franklin's advice that "by failing to prepare, you are preparing to fail" frequently falls on deaf ears in the personal environment.

This is usually, in my experience, because people feel they have neither the time nor the skills for personal financial planning; nor do they want to spend money on hiring a professional financial planner. And a few people I have met have such confidence in their ability to make and retain significant fortunes that personal financial planning is deemed unnecessary, even spineless.
So this article is about why financial life planning is important. I will share with you some of the current approaches to planning, show you how to plan in practice and highlight the outcomes.

Destination: Setting Goals

Financial planning starts with setting goals. After all, you need to know where you want to go before you can decide how to get there. Your goals can be short-term - for example, paying a credit card debt in six months; medium-term - such as saving for a down payment on a house in two years; or long-term - such as sending your kids to college in 15 years or your retirement. Write your goals on paper, including rupee terms and dates. Keep the list in sight so you can refer to it for motivation as you keep working toward your goals.

Starting Point: Where Are You Now?

Next, get a realistic picture of where you are financially. List everything you owe (liabilities) and the value of everything you own (assets). Also, track your monthly income and expenses in a notebook or on a budget form. Even if it's not a pretty picture now, that's OK. You've faced your financial situation, and financial planning will help you improve the picture.

Avoiding Potholes: Insurance, Debt, Job Loss, Taxes and Estate Planning

Financial potholes will inevitably come your way - stock market downturns, recessions, losing a job, wrecking the car, paying for an illness. You may not be able to avoid these potholes, but you can minimize their financial impact.

Financial Planning Process:

The Financial Planning Process consists of six steps, using which, you can work out where you are now, what you may need in the future and what you must do to reach your goals.
•    Step 1: Determine Your Current Financial Situation
•    Step 2: Develop Financial Goals
•    Step 3: Develop various alternatives
•    Step 4: Evaluate Alternatives
•    Step 5: Create and Implement an Action Plan
•    Step 6: Re-evaluate and Revise One's Plan
Financial planning, especially at an early age can help to give your life focus and help you to achieve your goals in life. So, start planning your finances today and fulfill all your dreams & goals of life without any hassles.