Financial Profiling
A financial plan is the road map for your financial life. It covers major financial areas of your life addressing aspects such as cash flow, savings, debt management, risk management, children’s education planning, taxes, retirement, estate planning, and of course, investments and a strategy for managing them.
Effective financial planning involves:
- Set realistic targets
- Invest Regularly
- Review Periodically
- Change the pattern whenever necessary
Financial Goals
A financial goal describes the future needs of an individual that will require funding. It specifies all information regarding the financial expense – time, reason and quantum of it. These goals might be Long term, Short term or intermediate goals.
SMART goals are identified by the following characters:
- Specific
- Measureable
- Attainable
- Relevant
- Time bound
To attain these Goals, we need to consider certain other factors i.e. the time period after which the expense is to be met and the rate of Inflation. It’s always good to find the future value of Goals before deciding the quantum of investment required.
