Financial planning Essentials for year 2021

Financial planning Essentials for year 2021


DO NOT SAVE WHAT IS LEFT AFTER SPENDING, BUT SPEND WHAT IS LEFT AFTER SAVING – A MANTRA to be implemented from year 2021 and onwards for Financial freedom

Financial planning helps you determine your short and long-term financial goals and create a balanced plan to meet those goals.

Here are 10 powerful reasons why financial planning – with the help of an expert financial advisor – will get you where you want to be.

Income: It’s possible to manage income more effectively through planning. Managing income helps you understand how much money you’ll need for tax payments, other monthly expenditures and savings.

Cash Flow: Increase cash flows by carefully monitoring your spending patterns and expenses. Tax planning, prudent spending and careful budgeting will help you keep more of your hard earned cash.

Capital: An increase in cash flow, can lead to an increase in capital. Allowing you to consider investments to improve your overall financial well-being.

Family Security: Providing for your family’s financial security is an important part of the financial planning process. Having the proper Insurance coverage and policies in place can provide peace of mind for you and your loved ones.

Investment: A proper financial plan considers your personal circumstances, objectives and risk tolerance. It acts as a guide in helping choose the right types of investments to fit your needs, personality, and goals.

Standard of Living: The savings created from good planning can prove beneficial in difficult times. For example, you can run home for 12 months if saved money in Liquid fund for Emergency circumstances like COVID 19 in case unable to work.

Financial Understanding: Better financial understanding can be achieved when measurable financial goals are set, the effects of decisions understood, and results reviewed. Giving you a whole new approach to your budget and improving control over your financial lifestyle.

Assets: A nice ‘cushion’ in the form of assets is desirable. But many assets come with liabilities attached. So, it becomes important to determine the real value of an asset. The knowledge of settling or canceling the liabilities, comes with the understanding of your finances. The overall process helps build assets that don’t become a burden in the future.

Savings: It used to be called saving for a rainy day. But sudden financial changes can still throw you off track. It is good to have some investments with high liquidity. These investments can be utilized in times of emergency or for educational purposes.

Ongoing Advice: Establishing a relationship with a financial advisor you can trust is critical to achieving your goals. Your financial advisor will meet with you to assess your current financial circumstances and develop a comprehensive plan customized for you.

The first step in developing your financial plan is to meet with an advisor and provide all relevant and true information.

Stop giving excuses for not investing funds as you are only fooling yourselves by doing this.

Identify your own spending and saving habits, cut down where necessary, save and invest whenever possible and create long term wealth from no where.

Inflation is the biggest villain in today’s world so never ignore the same while choosing Investment asset class.

Wealth Building = Less activity + Patience + Advise of Financial advisor

Make friends with Market volatility and accept it and try to take opportunity out of volatility instead of fear and panic decisions.

Dave Fintech wishes you all a Very Wealthy and Happy New Year 2021.

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2 Replies to “Financial planning Essentials for year 2021”

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