Every person needs his or her own financial plan – after all, we wouldn’t go on a holiday without proper planning, so why live our entire life without properly plan our finances? The first step is to assess where we stand today, and where we want to reach after a specific period of time. To do this, we need to first measure our financial health.

Most of us get a complete physical health checkup once a year, especially after a certain age. This is done so that we know our health issues if any, and can treat any ailments before they cause any damage. Our finances are as important to us as our health and deserve at least the same amount of care and attention.

We understand that Financial Planning can help to get our financial life in order. We want to take a planned approach in achieving financial success and not depend on chance alone. Building a financial plan for our self can seem confusing – not only we are too close to the financial planning since it involves our own finances, but also it is a complex process which takes into account a number of pieces of our personal financial information – like a large puzzle where each piece is our own financial data and requirements.

These puzzle pieces include:

And most importantly...



We all live and strive for certain goals in life. Goals and Objectives provide focus, purpose and vision to the financial planning process. By setting our financial goals we will be able to define our priorities, establish a direction and identify the results that we expect to achieve.

Financial planning involves planning for our life goals such as -Purchase of home, Purchase of car, Child’s Education, Supporting our parents, Child’s marriage, Retirement, Vacation, Buying Holiday Home, Wealth accumulation, Creating trusts, Charity and any other goals we may want to achieve. In this process first step is to determine and quantify the goals is very important and then assess the cash flows to see how to allocate funds towards the goals in a manner that goals are suitably achieved.

“As earlier as we can plan and invest, the higher will be returns and we can accumulate significant wealth as well.”
What is financial planning?

Financial planning is a road map to achieve our future financial needs and goals. It is a structured way of approaching to future financial requirements. It is true that Dreams is to be financed. It will make sure the right amounts of funds are available at the right time in the future.

Why is financial plan required?

Financial planning helps us to drive towards financial decisions or defined goal. It helps us to determine how much to save today for our wealthy future and where to invest our savings to ensure the desired returns.

What is the duration of financial planning?

The duration of a financial plan depends on the goals that it sets out to achieve. It can classify as Short term, Medium term, long term and Very long term goals.

  1. Short term goals are normally targeted in a 1-2 year framework - for example a vacation abroad
  2. Medium term goals fit into a 1-4 year horizon, for example, buying a home.
  3. Long term goals are achieved in a period of 4 -8 years - for example clearing up home loan.
  4. Very long term is 8 year and above - for example retirement planning and asset creation for next generation.
What is the risk and return in my profile?

Everyone has their own risk taking capacity. Our risk-return profile is our level of risk tolerance. A high risk venture is normally associated with high returns. We could be one of the following three risk and return profiles or somewhere in between the two.
Conservative or Low risk - We take minimal risks ensuring your funds are secure. For example investing in post office deposit schemes, bank fixed deposits, government bonds ext...
Moderate or Balanced risk - We are willing to take some calculative risks. For example investing in debt mutual fund, balance fund and nifty schemes ext....
Aggressive or High risk - We are willing to take high risks and prefer investing in equity mutual funds, direct equity, and Commodities market even we may be investing in speculative market.

When should one start the financial planning?

The sooner we start our financial planning the better it is, as it gives us more time to plan and gives our money more time to grow. Planning early increases our return possibilities while simultaneously reducing your risk. We should plan as soon as we start earning.

Who will help me to draw the financial planning?

We can make use of the skills of a financial planner who can help us with the financial planning process. A financial planner is aware of the range of investment and insurance products available for us to choose from and can suggest solutions that are in line with our needs, profile and situation. Since it involves our own finances, it is very confusing. A professional can provide clarity on our goals and road map to achieving them.

What are the requirements to start financial planning?

It is the very important stage of financial planning, because we may have deployed our money in various products, it is not advisable to destroy everything and start new. But we have to reconsolidate and start build financial plan on the existing plans and products.

What all required documents to start financial planning?
  • PAN.
  • Age proof.
  • Address and ID proof.
  • Passport size photograph.
  • Bank Account.