Financial Planning

What is Financial Planning?

Financial planning
is a
step-by-step approach
To
meet one’s life goals.

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Why Financial Planning ?
The only permanent thing in life is change!

• Life is uncertain.

• Lead a worry-free and financially secure life

• Deal with all kind of risks in life.

Need for Financial Planning….
• Financial Independence

• Breakdown of Joint Family System

• Wealth Erosion due to Inflation

• Rising Cost of medical services

• No Social Security from Govt.

• Minimizing Taxes
 FP

Income Expenses Savings Investments

Do’s of Financial Planning

• Home Budgeting

• Don’t Put Wants Ahead of Needs

• Start Early

• Set Financial Objectives

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Don'ts of Financial Planning
• Prioritizing wants instead of needs

• Getting stuck in a debt trap

• Ignorance towards financial literacy

• DON’T invest and forget

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……..what if no Financial Planning ?
Example:
Michael Gerard Tyson
• Former American world heavyweight boxing champion.
• Youngest man to have won a boxing world heavyweight title
belt.
• Made US$30 million during his career.
• Declared bankrupt in 2003
Reason:
• Indiscriminate Spending
• No Financial Planning
……..what if sound Financial Planning ?
Example: Kapil Dev
captained India to their maiden Cricket World Cup in 1983.
His businesses:
• 5% stake in Zicom Electronics
• Invested money in his own Kapil's Eleven restaurant
and Kaptain's Retreat Hotel.
• Established a company Dev Musco Lighting Pvt Ltd

Result… He is living comfortably even after retirement.

Thank You