FINANCIAL PLANNING

Each one of us dream but the only difference being dreaming with both eyes "wide open" (with self realization) or dreaming with" eyes closed" (no realization)..
Dreaming with self realization takes us a step closer to our desires with each passing day  as with every instinct one becomes more nearer to his/her dreams.

For getting more closer to  goals or targets and for turning dreams into reality as structured approach is required which is termed as Planning and when this Planning revolves around finances, it takes the form of financial planning.

Financial Planning is an art which revolves around playing with certain financial instruments and utilizing it for achievement of personal goals or targets. There are various devices or instruments available in the market in which the funds available can be invested for suitable time in order to generated adequate returns.The returns thus generated helps in best utilization of the money available for making dreams into reality.

Financial planning involves analyzing  various data or information available to set a target for achievement of these goals. It further involves constructing a financial plan and then implementing the various strategies. The foremost important step is monitoring implementation of various strategies and reviewing the plan.

Various Aspects of financial planning are:-

1)Estate Planning
2)Tax Planning
3)Investment Planning
4)Retirement Planning
5)Cash Flow Planning
6) Risk & Insurance planning.

Importance of Financial Planning:-

1)Helps in ensuring that all financial goals are acheived.
2)Helps in maintaining balance between outflow and inflow of funds
3)Helps in reducing the uncertainities with regards to adverse situations
4)Helps in utilizing scarce resources to best possible manner at least cost.

Deeksha Dhall

Introduction to Money Management

This Article goes out to the greatest human being, my greatest inspiration in life, to the most learned, most self-made and a true human being who is watching me from above and showering his blessings on me forever.

“This one is for you Grand pa for being my biggest teacher and my role model. Please accept my dedication to you as a token of love. Watching you over the years I’ve realized the importance of managing a very short but yet a very significant and influential word –‘MONEY’”

Whole world revolves around this powerful word as entire universe becomes paralysed in its absence. It becomes even more essential for us to manage our resources as nothing seems impossible after we learn to manage this. Management of money gives inner satisfaction and adds glory to life as each one of us has some aspirations or desires. In order to achieve those, what we require is:-

·         Money

·         Money Management

Earning money would not suffice for these aspirations as we would also require some other skills like “Saving” and “Investing” along with “Earning”.

Many of us dream all day (dream to own a car, dream to own a house, dream to have a nice vacation etc.).  Believe me dreaming is not at all bad as these dreams only give us hope, courage and strength to stand still even in times of turbulence.

Have a dream, Big or Small?????? You need not worry

Dreams can be made into reality by doing just a bit of planning.

 Little planning (inclusive of above two)              ========= Dreams Come True

Planning of finances at an early stage can lead to achievement of all goals sooner or later. A small saving can turn into huge wealth after some years by investing wisely and properly with adequate resources. 

A Simple and Surprising Calculation:     

Rs.2000.00  ======/invested monthly=======/        Rs.1335774.00 (after 20 years)

One can feel more nearer to his dream on analysing the value of the wealth accumulated over the years. Hence it’s very essential to keep investing in order to achieve our dreams.

Watch out the space for more information on financial products, markets, planning and many more. J

DEEKSHA DHALL