Financial planning:
If we want to invest our money we should first think twice about it .
The points to keep in our investment are : Time of period , return of the money with percentage and time.
We should have a financial planning
Financial planning plays a crucial role in building a life with less worry. Careful planning can help set your priorities and work steadily to achieve your various goals.
Types of goals:
1) Short term Goals
2) Medium term Goals
3) Long term Goals
Elements of financial planning include::
#Investing - allocation assets based on one's risk taking appetite,
#Risk management,
#Retirement planning,
#Tax and estate planning , and
#Financing one's needs
Life stages and priorities:
a) Learner -till say age 20-25
b)Earner - from 25 onward
c)Partner - on getting marriage at say 28 - 30
d)Parent - say 28 to 35
e) Provider - say age 35- 55
f) Empty nester - age 55- 65
g) Retirement - the twilight years - age 60 and beyond
As we can see above , the economic life cycle has three phases:
Student phase - first phase is the pre job when typically a student.
Working phase - phase of work begin individual comes to earn more than he consumes and thus begins to save and invest fund.
Retirement phase - process he accumulates wealth and builds assets which would provide funds for various needs in future including an income later years, when one has retired and stopped working.
To achieve one's financial goals , one must follow a disciplined savings in investment vehicles that best suit one's risk taking appetite.
An unplanned, impulsive approach to financial planning is one of the prime causes of financial distress that affects individuals.
These goals may be short term : Buying an LCD TV set or a family vacation.
They could be medium term : Buying a house or a vacation abroad.
The long term goals may include : Education or marriage of one's child or post retirement provision
The points to keep in our investment are : Time of period , return of the money with percentage and time.
We should have a financial planning
Financial planning plays a crucial role in building a life with less worry. Careful planning can help set your priorities and work steadily to achieve your various goals.
Types of goals:
1) Short term Goals
2) Medium term Goals
3) Long term Goals
Elements of financial planning include::
#Investing - allocation assets based on one's risk taking appetite,
#Risk management,
#Retirement planning,
#Tax and estate planning , and
#Financing one's needs
Life stages and priorities:
a) Learner -till say age 20-25
b)Earner - from 25 onward
c)Partner - on getting marriage at say 28 - 30
d)Parent - say 28 to 35
e) Provider - say age 35- 55
f) Empty nester - age 55- 65
g) Retirement - the twilight years - age 60 and beyond
As we can see above , the economic life cycle has three phases:
Student phase - first phase is the pre job when typically a student.
Working phase - phase of work begin individual comes to earn more than he consumes and thus begins to save and invest fund.
Retirement phase - process he accumulates wealth and builds assets which would provide funds for various needs in future including an income later years, when one has retired and stopped working.
To achieve one's financial goals , one must follow a disciplined savings in investment vehicles that best suit one's risk taking appetite.
An unplanned, impulsive approach to financial planning is one of the prime causes of financial distress that affects individuals.
These goals may be short term : Buying an LCD TV set or a family vacation.
They could be medium term : Buying a house or a vacation abroad.
The long term goals may include : Education or marriage of one's child or post retirement provision
