FINANCIAL PLANNING

FINANCIAL PLANNING
• Meet our future goals.
• Every individual needs to understand the
need
• To manage his or her finances.
STEPS IN FINANCIAL PLANNING

Gather financial
data

Implement/Revise Identify goal

Prepare your Identify financial

financial Plan issue (GAP)
Objectives Goals Incorrect Approach Right Approach
Specific SMART GOALS
You need to know
exactly what you want
I need money to pay
my college fees in a
I will save the money of
Rs. 50,000 to pay my
and when year’s time fees
at college
Measurable Your goal should be I will pay off my In the next six months, I
measurable so that you debts to my friends will return Rs 3000 to my
know when you can two friends for lending
achieve it me their money.
Your goals should be I will save money I will save Rs. 2,000
Attainable reasonable i.e. within each month by cutting
your reach down on eating out and
. partying
.
Realistic Your goals need to be If I save money I will If I save regularly, need
based on resources be rich not borrow more money,
and tasks that you can I can pay off my debts
reasonably accomplish. by next year and will
. have enough savings till
I
begin to earn.
Time-bound Goals with timelines I will save money for I will save Rs.10000 a
allow you to track your my vehicle year
progress and encourage for the next 2 years for
you to keep going until my vehicle.
you reach your goal