Diwali, the festival of lights is around the corner. Diwali is one of the most festive and beautiful times of the year where everybody gets busy planning for multiple things to be done like wanting to buy new clothes, gold ornaments, gadgets, spending time with family and friends. With the kind of spending that happens during the Diwali, a lot of planning goes into budgeting and making sure funds are available for gifts to family, friends etc. Implementing the lessons learned from Diwali to plan for finances throughout your life will make sure you live a secured and successful future.
So this Diwali let us illuminate the light of financial freedom to live a financially secure life for years to come. This Diwali take steps towards creating & preserving wealth by doing your financial plan.
Read below to understand the importance of financial planning in your lives.
Ever wondered, after getting a paycheck or when you earn a massive bonus, especially during Diwali time, or even a hike in your salary, we end up saving equal to or less than the previous saving proportion. We all wonder where we spend so much even after having sufficient earnings.
In such a scenario, a proper financial plan becomes an utmost priority. Financial planning is a process that helps you determine your short and long-term financial goals, estimate the capital and create a balanced plan to meet those goals. A crucial step in mapping out your financial future. When you have a financial plan, it’s easier to make financial decisions and stay on track to meet your goals.
Having said that, a major stumbling block standing in front of the people is the failure to realize the need for a financial plan and act at the right time. There is a general perception amongst youngsters who believe that they have no need to plan out their finances. Well, the earlier you start, the more you save. If you are one of those who thinks financial plans are only for people with so much money, then think again. Studies show that a comprehensive financial plan can benefit people at all income levels.
A financial plan will
- Help you define your financial goals.
- Help you see whether your goals are realistic, especially for your timeline.
- Help you see how you can bring your spending in line with your goals.
Once you know where you’re headed and how long it will take to get there, then you can look at your cash flow to find out if you’re spending more money than you’re taking in and accordingly your cash flows and invest more to achieve your goals. Once you analyze your spending it is more likely that you will be surprised and realise and say “I had no idea I was spending that much on Starbucks or eating lunch out,”
A comprehensive financial plan will not only take care of your goals but also focus on some important yet ignored concepts such as covering yourself with appropriate insurance needs, Retirement planning, Estate planning, etc.
Graphical representation of a Financial Plan“text-align: left;”>The first step in developing your financial plan is to meet with an advisor. An ideal financial planner would ensure risk profiling of his clients to select appropriate asset class for investments. An important aspect is to make sure your financial plan stays with you throughout like a companion and you too stick to it through thick and thin.
A financial plan is unique to every individual and hence utmost importance should be given to every client and his needs. In such cases, what’s better if you have an online access and control on your financial plan? Meaning, a plan which can be modified depending upon changing situations in life. In addition to this, a unique way in which the value-add is done to a client is by providing wealth check of client’s current portfolio. Please find below a video explaining WealthSecure’s advanced financial planning that addresses all of the above and helps you bring your future to present and prepare for it and help you achieve your goals much faster.