by Sanjeev Kumar Gopalakrishnan, Investing
19 Jun , 2018

4 Desperate Indications That You Need Immediate Help with Personal Financial Planning

Without proper planning, running even your day-to-day chores becomes chaotic with even a small change interrupting the flow. When this is the case, you obviously need to plan your finances well to keep the flow of life going on. When you are young and earning well, personal financial planning might seem unappealing to you. However, as you age the relevance of having a reliable financial plan hits you hard.

You realize that you need to plan for your child’s higher education, build the home of your dreams, or plan your retired life. But by then you would have lost many opportunities to have planned your financial goals in a timely manner.

Why is personal financial planning so critical?

Most of us plan our lives and even minor life events – our next career move, our vacations, and even our loved ones’ birthdays. But not many of us realize that our life goals are interlinked with how efficient our financial plans are. Personal financial planning in India is not just about provident funds, a couple of life insurances, and some plain investment talk. It involves preparing for your short- and long-term life goals and events in terms of planning the financial aspect of life.

You need to know how the life event is going to influence your financial situation, how much you will have left after the event, what is the financial gap that you will need to fill, what are the savings options you have, and how much will you need to earn to reach this life goal. Answers to these questions will help you plan your life and financial goals better.

How serious are you about financial planning?

Most of us already know the relevance of financial planning, while most others think about investments and planning only when your company’s finance team talks about tax. But the right way to plan our finances is to get more specific about our life goals and how money is going to influence each of our goals. However, many of us do not have such clear cut goals, so does that mean that we do not need to plan our finances?

Wrong! All of us need financial planning. There are indicators that scream out loud asking us look at our finances carefully. It’s just that we do not take them seriously. Let’s look at 6 such indicators

4 indications that you need help with planning your finances right away

1. You got married a couple of months back, and you will be shifting base to another city in India to join your spouse. You have no clue about the expenses you will incur after marriage – what will your lifestyle as a couple look like, what are the long-term plans you should be making, what are your common life goals, and how much money should you as a couple be making to lead a happy lifestyle? If you have not thought about these questions, your financial honeymoon would soon be over.

2. You are welcoming a new little member to your family. You’re thrilled about the amazing moments you will experience as your child grows up, but you have no clue about how you are going to give your child a happy and secure life – in terms of education, health, and day-to-day necessities. That’s a desperate indication that you need to step back and plan to give the new member a comfortable life.

3. You just woke up to a seriously bad news today morning. Your best friend from school suddenly had a severe heart attack and his chances of recovery

are pretty slim. This incident is bothering you because you are not sure what will happen to your family if you are in this situation. Is your family financially independent even if you are not in a position to earn a living for a considerable period of time? If you do not have the answers to this question, then you really need to think about financial planning.

4. You will be retiring within five years and you find yourself worrying about the kind of lifestyle you would be leading after your retirement. Yes, you have a house and your children are married. You also have a few investments. But you have no pension and you really do not know whether you would be able to lead the same lifestyle even after retirement. Should you look for a consultant-based job? Should you make additional investments? If you are not sure, then you are in desperate need for some robust financial planning.

There are many more such indicators that you really need to start taking your life and financial planning seriously. But where do you start? No worries! With the expertise and experienced support of a financial advisor or a registered investment advisor, you can not just plan your future carefully, but also get started right away and assess your regular performance. Connect with us today to explore how you can smartly reach your life goals with some agile financial planning.


 About The Author

Sanjeev Kumar G, an IBS Chennai Alumni, is a Certified Financial Planner (CFP) from India, since 2005. He has 22 years of experience and is an expert in various personal finance areas like portfolio construction, investment research, life insurance and financial planning.

 

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