Financial Planning is often rightly termed as blueprint or roadmap of your financial journey. This roadmap is essentially lifelong. At Hirannya FinPlan we understand and acknowledge this. Wholelife Financial Planning includes the following:
Essential Financial Planning
Family Budgeting
Sources of income and expense details are considered here. Not all incomes come at regular frequency or of same amount. Similarly not all expenses can have same frequency and certainty. Finding out near perfect monthly surplus amount and managing all expenses with dexterity is no doubt a daunting task. The more time spent here will ensure less time to spend in constructing financial plan.
Networth Analysis
Not every one of us handle investment documents with absolute precision. All your assets’ current valuation along with date of purchase, maturity date, rate of interest etc. are to be captured accurately. Such details and accuracy will only ensure that plan result comes out correctly. All liabilities’ details should also include amortisation schedule and up to date payments records. Knowing your networth is important to plan for the future.
Financial Goal Planning
This includes retirement planning, children’s education and marriage planning, buying home, vacation planning etc. There is a difference between your wishes and financial goals. A financial goal should be quantified along with definite time horizon. Identifying and quantifying of financial goals is surely the most important step in construction of a financial plan.
Risk Management
This includes analysis for requirement of life, health, critical illness, accidental protection and householder’s insurance. You should always be adequately insured. Choosing the right amount and type of cover is critically important. Getting over-insured or choosing wrong policies sometimes put undue pressure on your cash-flow. This should be avoided at any cost.
Review & Monitoring
A financial plan will only work, if it is duly implemented and regularly reviewed. All micro and macro economic assumptions can be revised and corrected during review. Addition of new financial goals, or changes in an existing goal, can only be taken care during review. Following a financial plan to the core can rightly be compared with gyming and exercising. If you are not regular with your exercises, chances are less that you would be physically fit. If you want to be financially fit also, make sure your financial plan is regularly reviewed.