FINANCIAL PLANNING

By: Chanchal Singla

BBE/23/23
FINANCIAL PLANNING
It means developing a personal roadmap for your financial
well-being.
The outcome of the whole planning process is a path which
needs to be followed to attain all the financial goals in the
light of external hindrances like inflation, taxes, etc.
It means systematically planning your finances in order to
achieve your financial goals within the defined timeline.
It serves as a guide as we go through life’s journey.
 Financial Planning Process
Following are the steps involved in financial planning process:

Step 1: Define the financial goals

Involves understanding our current financial situation and determining what you want
to achieve.
Step 2: Assess current financial situation
Understanding current financial situation & identifying areas where changes may be
need to reach our financial goals.
Step 3: Create a budget
It is important to track our spending and stick to our budget to achieve our financial
goals.
Step 4: Develop a financial plan
Should include a timeline for achieving each goal, as well as a strategy for achieving
them.
 Monitor and review
Step 5: Implement the financial plan your progress

This may involve making changes to spending habits, investing in

savings, or making other financial decisions to reach our goals.
Implement your
financial plan
Step 6: Monitor and review progress
Regularly review and monitor the plan to ensure that we are on the
right track to attain the goals. Develop a financial
plan

Create a budget

Assess your current

financial situation

Define your
Financial goals
 Benefits Of Financial Planning
1.Increase your saving:

When we make a financial plan we become aware of our income and

expenses which help in keeping track of them and assist in practicing Increase saving
cost consciousness, which will automatically help in increasing your
savings in long run.

2.Enjoy a better standard of living: Enjoying a better

A well-developed financial plan will help to honour our obligations on standard of living

Benefits
time, meet all the expenses and still enjoy a comfortable and stress-
free life.
Be prepared for
3.Be prepared for emergencies: emergencies
Unexpected financial distress can affect your mental health, which in
turn affects your performance, which ultimately results in a loss of
income stream. Thus, it is advised to maintain a fund equivalent to 6 Attain peace of mind
months of your expenses.

4.Attain peace of mind:

Financial planning is able to manage finances properly and have a