Financial Planning is the process of analysing your current financial position, determining your short term and long term goals in life, estimating the capital requirements for each of your target and finally devising strategies to achieve the goals.
We all earn money like how an EMI works, month after month a fixed amount of money gets credited into our bank account. We spend a large portion of this money for our and our families daily need. We keep the balance portion as a resource for future use.
So we all earn Income like an EMI, and how do expenses occur? They are in a lump sum basis. Hence, Financial Planning is a process of foreseeing your future commitments and allocating the resources so that you need not depend on others for your needs.
Financial Planning will provide a sense of direction to you. It will help you remain always on track keeping you aware on what you are doing and why you are doing by bringing all the possible financial aspects together. Each goal becomes part of larger picture. This helps you adapt easily to minor changes in life as you know your larger goals are on track.
Gone are those days when you could buy a piece of land or gold and consider that your Future Planning is complete. Most people buy different assets randomly and think it as Financial Planning. A plan can never allow you to take random decisions. Do not confuse Investing to Financial Planning. Investment Planning is a part of Financial Planning.
Process of Financial Planning
FPSB – Financial Planning Standards Board regulates and certifies professionals with the CFP – Certified Financial PlannerCM mark. These certificate holders go through a process of training and examinations; they also have to complete FPSB’s Continuous Education program to renew the certification every year. A person without the CFP certificate is not supposed to use the CFP mark. Only a CFPCM holder can call himself as a Financial Planner.
The Financial Planning process is well defined and most of the Personal Financial Managers like Vridhi Money will use the entire defined process. The process may have few additions made by the planners to better the experience of a client but none of the step will be eliminated.
All the Six Steps are well defined in the picture. We don’t want to take your time explaining them. We will be happy to discuss each step with you over the phone or when you visit our offices. Your geographical location does not matter to us since Vridhi is fully technology-driven. Vridhi Money invites you to get your Financial Planning done. You will be able to lead your life with a sense of direction once you complete the process. Vridhi will act as your one-stop solutions provider so that you or your family need not run pillar to post when in need. You read to see if you require Financial Planning and if yes why Vridhi? Click Here