Making money work: Here’s why you need financial plan to achieve goals

New Delhi | Updated: January 14, 2019 6:59:56 AM

You don’t need to invest large amount of money to reach your goals. All you need is a financial plan that can help you to pursue your financial goals

You may have goals like buying a house or vehicle, going on a vacation, your marriage, your children’s education, happy retirement life, etc.

By Ramalingam Kalirajan

Financial planning is a proactive process which helps us to overcome impact of inflation and achieve our financial goals. Here are the four reasons why financial planning is not only for rich people.

To accomplish your goals
You may have goals like buying a house or vehicle, going on a vacation, your marriage, your children’s education, happy retirement life, etc. If you have one of these financial goals to achieve, you need proper planning to achieve them. Goals without planning are like wandering in a deserted island. For example, if you are saving part of your income to buy your own house, it will take years to reach your goal or you may spend that money for some other emergency expenses. If you have proper financial planning, you will have emergency savings to manage your other expenses. So you can continue to pursue your financial goal without any interruption.

READ ALSO: Amazon Great Indian Sale start from this date; attractive offers on Redmi, OnePlus, Honor smartphones

Control your expenses
Everyone has different needs and different reasons to spend their money. Some of us buy things which we need, some buy things they already have. Sometimes to achieve your goals, you may have to sacrifice another goal. A financial plan helps to controls your expenses and grow your wealth. If you know how to control your expenses, it is also part of your savings.

Look after your loved ones
Every moment of our life is uncertain. That’s why it is important to have a financial plan. Just imagine, what if you lose your job or are hospitalised for long? You have the responsibilities to fulfil your family’s dream. Don’t let any uncertain situation crush their dreams. Having financial planning will help you to fulfil your responsibilities; even if you are not with them you can support your family financially.

READ ALSO: Apple Maps set to challenge Google’s domination in navigation in India

To live a happy retirement life
Most parents in India depend upon their children after their retirement. Though they don’t want to depend on their children, they don’t have a choice, and it’s because they don’t save for themselves.
All these days you have been working for your family, and you may have forgotten to save something for yourself. But you can overcome this situation, if you have a proper financial plan. After your retirement, you need to pay some bills without any income. You don’t need to invest a large amount of money to reach your goals. Start investment when you get your pay cheque, and it doesn’t have to be a large amount.

READ ALSO: Best investment options for salaried class: What they are and how you can benefit from them

Whether you are rich or not, you still have your own goals to achieve. Whether you have a small dream or big dream, you can still accomplish it. All you need is a financial plan which can help you to pursue your financial goals.

-The writer is founder and director of Holistic Investment Planners
Source: Tax Guru

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition