Comparative Study of Personal Financial Planning Essay

It is generally seen that people throw off a misconception that fiscal readying is ab out(a) saving more and spending less but that is not the case, it is more about saving the chastise amount so that approaching goals can be met. The objective of financial readying is * To ensure that the right amount of money is available in right hands at right point of time in the in store(predicate) to come through the craved goals and objectives. It * Provides direction and meaning to your financial purposes. * It allows you to control how each financial decision you make affects other areas of your finances. Financial supplying and investments can be undertaken by anyone with a clear assessment of ones in lam of cash in hand and the goals that need to be achieved from time to time. Keywords Financial planning, wealth management, investment instruments, substantive estate Introduction Financial planning is achieving your financial goals in the some efficient manner. The broad area s of financial planning include enthronisation planning-Your wealth will only grow over time if you soak up invested it in assets. Investment planningdeals with the kind of investments an individual should invest in to get the best out of his wealth.In this the risk and return indite of an individual is done based on his life stage, spending requirements with esteem to his income and wealth, time horizon and liquidity requirements and various individual specific constraints. Investment intend is important because it helps you to derive the maximum benefit from your investments. Cash flux planning In simple terms, cash flow refers to the inflow and news leak of money. It is a record of your income and expenses. Though this sounds simple, very few people in reality take time out to find out what comes in and what goes out of their hands each month.Cash flow planning refers to the process of identifying the major expenditures in future (both short-term and long-term) and maki ng planned investments so that the requisite amount is accumulated within the required time frame. Cash flow planning is the first thing that should be done prior to get-go an investment exercise, because only then will you be in a position to know how your finances look like, and what is it that you can invest without create a strain on yourself. It will also enable you to understand if a particular investment matches with your flow requirement 3. retreat planning Retirement planning means making sure you will have enough money to live on after retiring from work. Retirement should be the best period of your life, when you can literally sit directing fire and relax or enjoy your life by reaping benefits of what you earn in so many years of hard work. But it is easier said than done. To achieve a hassle-free retired life, you need to make prudent investment decisions during your working life, and so putting your hard-earned money to work for you in future. Planning for retir ement is as important as planning your career and marriage.Life takes its own movement and from the poorest to the wealthiest, no one gets spared. We get honest-to-goder every day, without realizing. However, we assume that old age is never going to touch us. The future depends to a dandy extent on the choices you make today. Right decisions with the help of right-hand(a) financial planning, taken at the right time will assure smile and success at the time of retirement. Retirement Planning acquires added importance because of the circumstance that though longevity has increased, the number of working years havent.Tax planning Tax evasion is illegal but tax minimization is legal. and then you can reduce your tax liability by planning effectively. With proper tax planning you can increase your after tax income. 5. Children future planning- It is essential to plan for the future of your children. The purpose of Childrens Future Planning is to create a corpus for foreseeable ex penditures such as those on higher education and wedding and to provide for an adequate security cover during their growing years. Savings alone is no longer enough.