Financial Planning in a Lay Man’s Language

Jyoti Jain, 16/Sep/2013

Like every individual, even you might also be preparing yourself to meet your child’s requirements like education and marriage and your own future, during retirement days when your body will no more be able to support you to earn income for your living.

These questions, wandering your mind could make you restless as the goals approach.

You may be thinking on various terms like:

How much will I need for my child’s education? May be Engineering or MBBS?

How many years are left for the requirement?

After the education, will I be able to support my child’s marriage expenses?

What will I do during my old age without any income?

Talking about today’s scenario, you might approach a colleague, a relative, a friend, etc seeking advice to get prepared for your MANDATORY future Goals of Life. You will be advised to go ahead with various options. Some of the common ones are:

-I think you should start investing some amount every month in an RD.

-Why don’t you save for a year and invest the saved money in a FD?

-Just Buy Gold and keep.

-How about meeting my friend who is a mutual fund agent, he might actually guide with some fund, etc. etc.

Now, let’s imagine you go ahead with any of the recommendations given to you. After X yrs when you require, say about 30 Lacs for your child’s education, and you find that your money invested has fetched you only 20 Lacs, What will you do?

The other goals are also on the way. What will you do? The only option would be to take a loan or borrow money from a close acquaintance or sell some of your assets?

How to overcome this problem? The solution is very simple.

You need to PLAN. Life becomes hassle free when everything works as desired. Here is where Financial Planning comes to rescue.

What is Financial Planning?

In simple words, “It is planning for all your future financial goals to ensure you have the right money at the right time.”

Your main criteria, in life, are to have adequate sum of money when required. Financial Planning means best utilization of your Available Money in a planned manner. This means planning is not just investing, you need to plan even if you don’t have adequate sums. Financial Planning is a step by step approach where any lay man can start understanding his actual position to meet his goals.

How does it work for you?

As mentioned earlier, Financial Planning is a step by step approach starting right from setting the goals to monitoring your path to achieving these goals.

The Financial Planning Process works in the following manner:

1. Identifying the financial goals, i.e. the expected amount to be spent for the education and marriage of the child and the required amount during your retirement age and other goals.

2. Gathering all data relevant to your current and future financial needs by understanding the income and expenses flow and the surplus thereupon.

3. Analyzing the data gathered to utilize every aspect to the fullest by the Financial Planner.

4. Recommending a plan to meet all the financial goals.

5. Implementing the plan step by step.

6. Monitoring the plan so that there is no deviation on the actual requirement.

To sum up the entire thing, Financial Planning bridges the gap between where you are and where you are supposed to be, through these (6) Six Steps.

You would have met several agents or financial advisors who are hired by financial institutions. The idea with which they approach you is to push you towards buying a product which they have been assigned targets! The point here is in the fact that they are doing so to earn their incentives or may be to keep their boss happy for their promotion. All these at your cost!

The reality you need to analyze is that Are you ready to risk your financial goals in such hands?

We, at VRIDHI focus, primarily, on Financial Planning in its pure professional and unbiased manner. Hence as our client you get personalized service without any product focus and as a one point contact for all your life requirements. Though you may be from any part of this world!

VRIDHI looks at a very long lasting relationship with you that will go on for the next 20-30 yrs and generations ahead. Click Contact Us page just for your benefit!


Fee Based Top Best List Certified Financial Planners in Chennai Certified International Wealth Management Advisors Companies in Chennai India Stock Market Mutual Funds Tax Saving ELSS Consultants Advisors Brokers Agents Managers in Chennai India CPFA CFP NISM BCSM SEBI Investment Advisers Training Institutes T.Nagar Chennai India Vridhi Vivek Karwa Investment Advisors Consultants Chennai, Executive Financial Planner Jobs Stock Market Training in Finance and Mutual Fund Distribution Tax Planning Certified SEBI Registered Personal Investment Advisers Planners in Chennai India

Post your Valuable Comments below:

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.