planning is the long-term process of wisely managing your finances so that you
can achieve your goals and dreams. These goals may include:
Buying a house
Saving for Your Child's
Your Daughter's Marriage
Buying a car
Eventually, plan for
How to Make
Financial Planning Work for You?
Understand Risk and
Financial planning is the long-term process of wisely managing your
finances so that you can achieve your goals and dreams. These goals
may include: free lunch. Risk and return are interrelated. Set
reasonable objectives. Do not expect high-yield investments not to
carry any additional risk; they usually do. Most people underestimate
the stress of a high-risk plan on its way down. In most cases, it's
better to be safe than sorry.
Start Early in Life
There is a myth that financial planning is for the elderly. The
earlier you start financial planning the better of you will be in
achieving your life's goals. It's more advantageous to save small
amounts of money at a younger age than to wait till one is much older
to save large sums.
Execute The Plan On Time
Financial planning is a perishable commodity. What is available today
may be gone tomorrow. Speed and timeliness of execution makes the
difference between a millionaire and an average performer. If you have
doubts about your ability to execute the plan in a timely.
Set Realistic Goals
Set specific targets of what you want to achieve and when you want to
achieve results. Be quantitative wherever possible. You may dream of
your goals but be in touch with ground reality. Not all can be a
Review Your Plans
Once the plan has been implemented, it requires a periodic review.
This is imperative to adjust the plan to the changing situation in
one's life, financial situation and income levels.