Financial Planning is needed for everything in life. Budget for India is nothing but a big financial planning. Yes, you need to plan for each state, modernising, upliftment of people, creating jobs, Increasing the economy of the country etc all will feature in budget. Just think of a situation were Government just have money and keep spending on things on ad hoc basis. Money wont last for long. There will be irregular spending on unwanted things. Hence we need budget or financial planning.
In most of the cities we have got metro, every metro project was started with a budget and to the extent within which it has to be completed. If we bring that budgeting activity to each home’s it is in the form of financial planning.
Why you need it ?
Do you really need financial planning ?
Are you open to ideas in your life which can bring in wealth, health and happiness ?
Are you ready to take action in life ?
I have chartered accountant friend who learnt about stock market investment and started investing. He just learnt from someone and started doing intra day trading, futures & options etc.
Incidentally he started during the stock market crash of 2008 and within a span of 30 days he lost 57 lakhs.
First week – Small profits
Second week – Lost 3 lakhs. Started investing from his credit card.
Third week – Took personal loan.
Fourth week – Lost 57 lakhs in Futures & Options.
He entered stock market just to close 3 lakhs and eventually created debts worth 57 lakhs.
The ultimate reason is as he was not having his financial goals in his life, it has created debts in his life.
Money is emotional thing. If you need financial freedom it will push you to do whatever it wants. It is you who should decide and follow which is the right thing to do in life.
2 different tales ;
They started together in cricket but 2 of them ended their career in different directions. Kambli and Sachin grew playing together in cricket matches. They even held the record of having highest opening partnership. Kambli started with the bang but soon was out of playing 11. Sachin on the other hand started slowly and established himself as God of cricket.
Everybody is different and you need to know the “Why you need financial planning” in life. In short term you can look at high return generating assets, but in a while those assets may not perform or it is not the right one for you.
At times you might have chosen best things in life and according to you it is perfect. Only if you go to Financial advisor, he will ask you right questions and make you realise the need for financial planning. You should start investing and planning things when you are earning money. Don’t make the mistake of regretting during your retirement days.
Find out the “Why” you need financial planning now !