A financial plan is the road map for your financial life. It covers major financial areas of your life addressing aspects such as cash flow, savings, debt management, risk management, children education planning, taxes, retirement, estate planning, and of course, investments and a strategy for managing them. It is more than a guide. It is a written strategy that gives you a clear, pragmatic path to follow towards the accomplishment of your most important financial goals.
Having a financial plan is like having a travel plan – it identifies where you’re going, how and when you’ll get there, how much will it cost, and things to do along the way. A personal financial plan looks at where you are today and where you want to go. Then it sets out all the steps you need to take to get there. Everyone who is earning should draw up a financial plan. The plan will help you get the most from your money and help you in achieving your financial goals in life.
Do you need financial plan?
Yes – if you have an income, a family or planning to have one in the future, retirement dreams, and for many other financial reasons / goals that are unique to you. No one can predict the future but one can certainly be better prepared for it. An effective financial plan will make sure that you are financially prepared to deal with the unexpected events and stormy times. If you don’t have one, you’re more likely to end up in a financial mess. On the contrary, if you have one and the recommendations thereon have been executed, most of your financial goals will be satisfactorily met. A good financial plan can alert you to changes that must be made to make sure a smooth transition through life’s financial phases, such as decreasing spending or changing asset allocation.
By developing a financial plan you and your family:
- Will have a better understanding of your current financial position.
- Determine attainable retirement, education, insurance, and other financial goals.
- Review goals, funding strategies, and alternatives to balance all goals.
- Have the necessary financial resources set aside to fund your goals as they occur.
- Reduce the effects of unexpected events such as disability, premature death etc.
You need not be very rich to have a financial plan. No matter how much you earn and at what age, a plan is important to make your life easier. As your financial situation influences almost every aspect of your life, a regular financial plan can help give you peace of mind and protect you from unforeseen, unfavourable situations. Once you have a working personal financial plan, you can use it to make informed financial choices. Having a good financial plan will allow you an over view of what you can afford. It will allow you to analyse your wants versus your needs. It also provides.
Make an Effective Financial Plan with Lionford Ventures
- We are realistic with your investment returns; we don’t plan to outperform the markets.
- We help you in understanding market risk and reward ratio and let you understand that same return will not going to be repeat every year.
- We plan for inflation, taxes and your financial planners’ fee.
- We review your financial plan reg
