In simple English, Financial Planning is the process of meeting your life goals through the proper management of your finances. Life goals can include a range of objectives, from buying a house to saving for your child’s higher education or planning for retirement.
Why Financial Planning?
Financial Planning plays a crucial role in providing direction and imparting meaning to your financial decisions. It helps you understand how each financial decision you make affects other areas of your finances. For example, buying a particular investment product might help you pay off your mortgage faster or it might delay your retirement significantly. By viewing each financial decision in a larger perspective as part of the whole, you can consider its short and long-term effects on your life goals.