We hear the term Financial Planning being mentioned quite often nowadays. Ever wondered what it was?
Imagine there was this big piece of land and the owner of that land wanted to build a mall in that big piece of land. Now how is he going to do it? Is he just going to start laying bricks wherever he can? Or is he better off coming up with a plan as to how many shops he is going to have and lay them out so that he has it totally planned as to how much area each shop is going to occupy? As a matter of fact he would not be able to lay out even a single brick without getting a permit from the city. And we all know the city is not going to give him that permit unless and until he has a blue print!!!
Now Financial Planning is based on the same concept. Its a blueprint of your financial future!!
Every one has financial goals. For eg. Pay for your kids education, have sufficient income during retirement etc. With a good Financial Plan your chances of meeting those goals are substantially increased. There would be other variables like how much you have to invest and how much of a timeframe you have but basically your chances of meeting your Financial Goals are vastly increased with a Financial Plan than without one!!
