Financial planning is the management of your finances to meet future goals and aspirations, while protecting you and your family from the adverse impact of any life events.
Financial Planning broadly comprises of 3 steps:
- Expense Management
- Investment Planning
- Risk Management
Financial planning is the process of controlling your expenditure to maximize yoursavings (expense management),investing the savings to meet future goals and aspirations (investment planning) and ensuring that you are covered to minimize impact of unplanned events through your lifetime (risk management). It involves being aware of your ongoing expenditures to maximize your savings. Savings are invested in a diverse basket of investment products to maximize returns, while controlling the interim losses to the investment within limits acceptable to the individual. All along you are covered via insurance to minimize impact of any life events on your family.