Anything you want to do in your life can usually be quantified in terms of the money that you will need to spend on the goal you wish to Fulfill. All goals have a financial value attached to them. For instance, if you want to buy a Car,you can easily calculate whether it will cost you Rs. 4 lacs or Rs. 12 lacs.
Some of the Financial Goals can be classified as :-
• Retirement Planning
• Education for children
• Children’s Marriage
• Emergency Fund Planning
Buying a house or a car of your own etc.
Depending on person to person we all have priorities that which goal is having highest importance and for that what to start saving to meet those entire goal on time. Financial conditions should be built on solid foundations.
Once the basic needs are met one can start thinking about the goals for their changing lifestyle, this goals can be different from one to another as different people have different needs according to their lifestyle for them and their family so that its extremely personal.
Examples of this goals can be :
• Buying an LCD television
• Big Vacation Abroad
• Creating your own Gym
Need to have tons of money?
Financial Planning is the greatest thing that not many people think about even if it provides a high security of future & also it makes your life simpler.We already knows that we can’t predict the future but its better if we plan it today.
All of us have something to plan it, not necessarily one have to be rich to plan it. Financial Planning is a peace of mind Someone has rightly said:- If you have dreams, you need a financial plan! It depends on how much effort you willing to put in for your financial plan, like in terms of Expenses, Income & Asset, and Liabilities too.
But surely it requires lots more than the above which are,
• The time you have to achieve the goal
• Risk taking capacity of individual
• Need of emergency money
• Increasing inflation
• Need of regular income