Written by Banudas Athreya on 03 May 2019
There is a common myth that financial planning is only for the rich. Unfortunately that is the way our banks have portrayed it as well. Financial planning is imperative for everyone who wants to have a family and wants to secure their future.
People with financial goals and plans will have to undertake the exercise of financial planning.
First let us understand why this myth is created that financial planning is only for the rich. The banks and financial institutions have propagated this as they do it as a free service available only for the high income group.
As they can rope in the rich to buy more of the financial products financial planning has largely been ignored for the Medium and low income group. Financial advisors have largely stuck to the rich as they can get a better bargain from them.
Here are some tips for your financial planning. Write down all the goals you have until retirement year wise
· Account for inflation of the costs and run it to the year you need the funds
· Allocate your Monthly incomes towards these goals
· Review availability of funds to allocate towards goals verses your monthly income
· Plan your expenses and investment
· Implement your plan and monitor until achievement
· Ensure you are adequately insured for life and health
With respect to your investments
· Avoid ULIPs, Child plan and all such similar products
· Take only term insurance for life
