Financial planning is one of the most crucial decision for planning one's life. If you start planning early, you can get out of a financial mess that can arise later in life. It is very common to spend more than what you earn. There facilities like credit cards, buy now pay later schemes, installment facilities and so on, which compels one to overlook their finances. At the end of the month, when bills keep pouring in your mail boxes, you find yourself in a sticky situation. And this mounting bill payment adds a semi-colon to your long-term dream of owning your own house. Sometimes, medical emergencies also forces you to dig into your children's education fund. Marriage plans for your only daughter? You borrow some money from your retirement fund. There goes the trip to Egypt, you have planned all those years!
The answer to all the above mortifying financial situations is 'Financial Planning'. The planning process helps give a direction to your financial decisions. It helps you decide various investments that can bail you out of your financial problems. For example, investment in mutual funds may help you repay the loan or save enough for your retirement. Once your financial goals are set, it helps make your life more secure and flexible for any financial emergency that may arise.
You can carry out your own financial planning by taking a guidance from self-help books, newspapers, magazines, the Internet or discussing your financial needs with your spouse. If you feel, you can't handle it yourself, then opt for a professional financial planner. This Buzzle article, will help explain process related to financial planning.
