There are always so many choices in a person’s mind about usage of money. His priorities change continuously and he always has more things to do with his money than the amount of money he owns. So there is confusion in his mind about usage of money and also conflicting options. People around him add to this confusion by giving him more and more ideas. The person sees people around him and finds out what other people are doing with their money. Result: confusion, constant flow of conflicting ideas and stress and frustration.
A person can reduce this stress by doing the exercise of Financial Goal Planning. The profession of Financial Planning is in its nascent stage in India and this is a new concept to us. The process of Financial Planning is similar to strategy sessions done in corporations. It is said that formation of strategy is tough but executing is even tougher. This is due to the “Behaviour Gap”.
Let us understand the process of Financial Planning-
- Agreement between client and Financial Planner.
- Data collection from client.
- Financial Planning.
- Execution of the Plan.
- Periodic Review.
The Financial Planning process is very important to achieve one’s financial goals like Children’s education, Children’s marriage, Retirement, Buying a dream home etc.
It helps a person achieve his goals faster and on time. It also helps to achieve a balance between conflicting usage of money. Thus the client is able to live with peace of mind.
Let us go forward in this battle fortified by conviction that those who labour in the service of a great and good cause will never fail.