Planning is something that each and every one of us does everyday, every hour of our life. A child plans when to play, when to study, when to watch TV; the lady of the house plans how to strike a perfect balance between her professional and personal life; the man of the house plans how to provide for the needs and necessities of his family and how to protect them from any harm.
Nothing in life can ever be achieved without proper planning and execution. So how can it be possible that we achieve our financial goals without a proper plan? Believe me, it's not possible. This is where a financial plan comes into picture. Just as a knight in shining armour it steps in and rescues you from the clutches of despondency and imminent financial doom. Let us first understand what a financial plan is and how your involvement is important to turn your dreams into reality.
So what is a financial plan?
A financial plan is a comprehensive strategy tailor-made in accordance with your financial goals taking into account your current financial position and designing a plan that will help achieve your future financial destination in the most effective manner. Your goals can be sub-divided into your needs, your dreams, and your responsibilities. Hence a financial plan is a comprehensive strategy to help you to fulfill your dreams and to provide for your needs and responsibilities.
Sheetal Jhaveri is a financial consultant and can be reached at dhanplanner@rediffmail.com.
Text: Sheetal Jhaveri | Photograph: Chris Hondros/Getty Images
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