What is the Objectives of Financial Planning????
Objectives of Financial Planning Achieving your dreams Someday we would like to own a cafe, or a boutique, or do your MBA, or tour the world, or finally quit your job and start our own company. If we don't plan for these things, chances are they'll just remain dreams. We will never have the right resources to go about achieving them. So we should start by planning for our goals: 1. List down the things we want to do. 2. Find out how much they cost. 3. Embark on a mission towards achieving the right resources in order to be able to afford them. Financial Independence Can we imagine a time when we are no more a slave to money? When we can do anything we want, at any time we want? We call that Financial Independence, when we have enough tucked away and not worry about the major expenses in life. It's different from retirement. We may still continue to work if we enjoy it. But we have the resources to stop working anytime in case we wish to. No debts to repay, no outstanding loans, and everything in the horizon which may require money is more than covered for. Financial Independence is different for everybody. It really depends on our lifestyle needs. If we can be happy with a small house, we are likely to reach your Financial Independence sooner than if we have to live in a huge mansion. Financial Independence doesn't just happen. We have to plan for it. Those who do tend to achieve it sooner than those who don't.
I appreciate the above post and would like to add some more details to it. Financial planning is the long-term process of properly managing your finances so that you can achieve your goals and dreams and at the same time negotiating the financial barriers that inevitably come in every stage of life. Financial planning is a process, not a product. While doing financial planning one should establish goals, gather data, analyze and evaluate your financial status, develop a plan and then implement the plan.
July 04, 2013 | Report abuse