Financial planning is the act of managing your income; setting your financial goals and then allocating your assets across investments keeping in mind your limitations and requirements.

There are a few financial goals that are very important for every individual like owning a new home, starting a business, education of children, or retirement planning but as we all know each thing comes with a price tag attached to it, that’s where financial planning comes in.

Despite its name, Financial Planning is more about life than money. It is a process that can help you reach your goals by evaluating your whole financial picture, then outlining strategies that are tailored to your individual needs and available resources. It is a crucial activity which is meant for future.

Financial planning is a highly-personalized process. You need to take into account multiple factors about your life – past, present and future – in order to form a feasible financial plan. Remember, for a plan to be effective, it has to be well-thought, comprehensive and with an eye on the future. Simply put, a financial plan has to be planned by individuals keeping in mind their stage in life cycle and their needs. It is a cyclical service that constantly repeats as clients need change over time. Both the client and planner have certain responsibilities to make the exercise a success.

Good and thoughtful planning is the cornerstone of an individual's good financial health. Financial planning is the act of managing your income; setting your financial goals and then allocating your assets across investments keeping in mind your limitations and requirements. The need and importance of financial planning when Inflation & changing lifestyles are the biggest cause of concern, cannot be overstated.

Unexpected things happen all the time - so being financially ready for it makes life much easier. Whatever stage you are at in life, you need to make sure your personal financial life gets the attention it deserves. You need to develop well-defined goals and define appropriate strategies to turn your dreams into reality. The right time to create a financial plan is right now. No matter what your income level or what your hopes for the future, you need a solid plan to achieve your goals. Drifting through life without carefully set goals and well-researched methods of achieving them is a recipe for disaster.

The process of financial planning should help you answer three questions. Where you are today, that is, your current personal balance sheet, where do you want to be tomorrow, that is, finances linked to your goals, and what you must do to get there, that is, the asset allocation and investment strategy that will help you achieve your objectives.