Financial Planning

 Financial Planning

To understand the meaning of financial planning, we must first understand the different meanings of both words, the meaning of finance - finance, or finance, and the definition of planning - planning.

Definition of financial planning to make a plan to meet all the financial needs of your life.

Simply put, “Planning to meet financial needs is called financial planning”.

Now let's try to understand the needs of small finances, what types of financial needs are, and what the need is for planning them.

Financial Needs

Financial needs, such as – 

• Normal Income for Daily Needs - Normal Income for Normal Expenses.
• Income security - Income security, when we continue to receive normal income, (income after retirement).
• Emergency Funds - Funds needed for any type of emergency or event, such as financial crisis, illness, accident, etc.
• Short-Term and Long-Term Health Goal - Homeowner, his car, good children's education, and their marriage, travel to the country or abroad, and much more.

In this way, the financial needs of all of us may be different, but everyone has a financial need.

For everyone, meeting his financial needs is the goal of his life, which is also related to his personal success.

Now, in that case, you too will have your same financial needs, and this financial need always motivates us to work and earn money, which is why we all continue to work continuously from the beginning of our career until retirement. that we can meet all of these financial needs.

But the big question is- Are we all successful in meeting our financial needs? - So the answer is - "No".

Only 5% of people are able to achieve financial success, and the remaining 95% of people fail and get caught in the rat race.

Why is it important to make a financial plan?

I do not need to tell you how much planning is necessary for you to succeed in any task, there is a saying about the importance of planning - Preparation is part of a defeated battle.

So in this way, our financial success also depends largely on whether we have the right financial plan or not. To achieve financial success, having a financial plan is very important.

Benefits of Financial Plan

Apart from this, when we talk about the benefits of budgeting, it means that there are many benefits to budgeting, such as -

1. By making financial plans, we can control our unimportant expenses, and thus increase our revenue in a positive way.

2. You can keep a balanced balance between your income and expenses.
3. With the help of a financial plan, we can invest our savings in the best possible way, such as investments where there is less risk and we earn a large profit, sufficient to meet our financial goals.
4. Through financial planning, we assist in appropriate tax planning, retirement planning, and fulfillment of all financial goals, large and small.
5. With the help of a financial plan, we can provide financial security for our family, as well as a children's future with the right amount of insurance cover so that in the event of a disaster, family members do not have to seek financial assistance from anyone else.
6. We all want to make the best investment, in which case, by investing in financial planning, we can easily choose the best investment options.