THE FINANCIAL PLANNING, THE FINANCIAL PLANNING IN 7 STEPS AND FINANCIAL INFORMATION “Th INTRODUCTION This Chapter titled Financial Planning, Financial Planning in 7 steps and Financial Information will present a step-by-step approach to meet one's life goals. A financial plan acts as a guide as you go ‘through life's journey. Essentially, it helps you be in control of your income, expenses and investments such that you can manage your money and achieve yyour goals. ln. E wees OF FINANCIAL PLANNING Financial planning is done to achieve your future goals, including investmers, tax saving, retirement, education, etc, The basis on these, some of the common types of financial planning are ‘Linvestment Planning 2.Tax Planning 3. Retirement Planning 4.Budgeting S.insurance Planning 6 Education funding planning 7.state planning B.Wealth creation E Objectives + Ensuring availability of funds + Estimating the time and source of funds * Generating capital structure * Avoiding unnecessary funds ™ E WHAT IS FINANCIAL PLANNING? Financial planning is the process that helps in managing your financial resources to achieve your long-term or short-term goals. It entails assessing your financial situation, establishing financial goals and risk appetite, and devising strategy to achieve those goals. It helps you in ‘making informed decisions to allocate your funds. current Importance of Financial Planning + The impor agoals Fina 8 of financial planning is tat I provides. al planning helps you understans your go un. dn. term of why you need to achieve these gous and how they impact other aspects of your life an frances. Benefits of Financial Planning 1LSmocther Transition into otferent LifeStages 2 Helge Stay Prepared for Emergency lating the Right Insurance Cover ‘Better TaxPlarning S.Attan peace of mingm The 7 Steps of Financial Planning ‘The seven steps of financla planning start with geting to know the client's current financial station ang goals and end with continualy measuring performance tonard those gosls ane updating them as necessary ‘step. Understanding the clan’ personal and Fhancial circumstances. Step 2: densiying and selecting goals ‘Seep 3 Analyzing the lent’ current course of action and potential alternative course(s) of ation. ‘Step 4 Developing the firancial planing recommendations Step 5: Presenting the financial planning recommendtion| ‘Step 6 implementing the financial planning recommendations. Step 7: Monitoring progress ane updating E = concLusion Financial planning is an elaborate procedure that includes identifying financial goals, analyzing resources, and developing a plan of action to achieve those goals. Financial planning generally consists of seven steps: goal-setting, financial data collection, analysis, plan development, plan implementation, progress monitoring, and appropriate revisions. Financial. information includes details on income, expenses, assets, lablities, and investment portfolios, presenting an overview of an individual's or entity's financial heal ln. ln E saris riwanciat inrormarion? + Financial information i 6ata about the monetary transactions of a person or busines. Ths information Is use to derve est mates of creat Fie by crete and lendee txamples of fiancial information are creditcard numbers, credit ratings by eae is laf to investors in understanding a company’s proftabilty, assets, and. growth prospects, Financia Osta aout Indiviuals ike past Month's Bark statements and Tax return recepte helps banks understand customers’ credit quay, repayment capacity, THANK YOU!