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What is Financial Planning? Meaning, Types & Process Explained

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All of us have taken a road journey sometime in our life but it would come as a surprise to many of you in knowing that financial planning is akin to a long road trip. The first step of a road journey is planning, similarly, in your life’s journey, finance or investment needs immaculate planning, and that too well in advance.

How do I plan? 

The answer is not so simple as not many of us are acquainted with the nitty-gritty involved in Financial planning, so the best is to take on board Financial advisors or Investment planners. These are professionals who have been down this path countless times and have a proven system in place to guide you according to your goals.

What are financial goals? 

Financial goals are the personal things you hope to achieve in the short term or further down the road in what is known as a long-term goal. Your short-term goals are the other places that you come across while traveling but your long-term goal has to be your final destination. As all of us have different needs and aspirations, we need to discuss our goals with financial advisors to finalize a roadmap.

Also Read: Understanding the Goals of Financial Planning

Why do I need a roadmap? 

Simply because if you try navigating your finances without having a concrete plan, you are most likely to get lost mid-way, or even worse abandon your journey. The smart move would be to consult a Financial Planner who will help create a dedicated roadmap for your finances.

What benefits will Financial Planners bring? 

The biggest benefit they bring is that they will help you navigate bending roads, forked roads, and detours i.e. are prepared to overcome the uncertainties and make sure you have a smooth ride to your destination.

Seeking assistance to be on the right track is easy these days with online investment advisors, and their extensive experience will help in reducing financial risks, money-related uncertainties, and maintaining good financial health. Thus, concrete financial planning!

What are the components of a financial plan? 

Four pillars of a financial plan can be summed up as:

1) Savings and Income

2) Assets and Liabilities

3) Risk Management

4) Retirement Outlook

From where do I get a financial plan? 

There is no financial plan that ‘fits all’ as each one of us has different needs, different income, and different goals, therefore, getting one that is ‘tailor-made’ for you is the best option. As they say, financial planning is a smooth ride with experienced financial planners. So, hop on and enjoy the process of making financial dreams into reality.

Trust Team Fincart with its extensive experience to stitch a perfect fitting ‘tailor-made’ financial plan for you.