Money is an important factor governing the quality of our lives. It is essential for meeting our day-to-day affairs. Although we acknowledge the fact that money cannot buy everything yet the importance of money in everyday life cannot be ignored. Going by basic principles of Economics, since money is a limited resource, the planning aspect assumes a very vital role in the efficient and effective utilization of money for the satisfaction of our needs or wants.
This is where financial planning steps in. Planning is essential in all aspects of life because once you have devised a plan you know exactly what your aim, shortcomings and requirements are and how you would be able to find the right and most effective path to success. We all live with the hope that tomorrow is going to be a better day but for tomorrow to be a better day it is very important that we take all the necessary steps today.
Money is a vital issue in our lives whether it is for meeting small day-to-day needs, or to buy that dream house, your child’s education or last but not the least catering for your post retirement days. Since the money available is always less than our demands or needs, proper financial planning is the only way to ensure the effective utilization of the available finances or funds.
Each penny counts and thus, it is very important to make financial planning an inseparable part of our lives. Money management or financial planning is to start at a very young age. Children should also be taught the importance of saving, and the habit of saving and realization of the value of money should be inculcated at a very young age itself.
Financial Planning is not only important from an individual’s point of view but is equally essential for any institution or a business venture. For a business, financial planning plays a very significant role as the available finances or funds have to be channelised in the right manner so as ensure that the business is able to carry out its operations most efficiently and profitably.
Financial planning helps us to identify the various sources of income, the amount of disposable income available and find various investment opportunities and ways of saving. Financial planning provides a focused view regarding how to use the available funds efficiently so that you are in a position to cater for that rainy day well in advance.
Life is uncertain and can bring forward a lot of unexpected twists and turns. It would be wise on our part to try and predict some of the requirements the ups and downs of life may bring forward and cater for it well in advance. Emergencies like a disease, hospitalization may crop up at any point of time therefore it is best to be prepared.
For an understanding of the overall picture and making out a plan that is in keeping with the times it would be advisable to seek the help of a professional financial advisor when it comes to financial planning. A professional financial advisor would be able to give sound advice in keeping with the present market trends and also at the same time having your individual needs and preferences in mind.
The financial advisor would be able to identify the best investment opportunities in terms of returns and risks involved and also suggest a plan that is customized to your needs.
There are many institutions and individuals that undertake the task of financial planning for you. It has become even easier today with the Internet playing the role of a good mediator. A proper survey and study should be done before choosing your financial advisor. A good financial advisor would be one who completely understands your requirements, is able to see things from your point of view and provide a tailor made solution that caters to your individual needs and requirements.