Financial planning is a process of preparing a road map to achieve life’s financial goals. It is a process of planning and managing personal financial resources by budgeting, planning, saving and spending of monetary resources over time considering various financial risks and future life events. It is basically a step-by-step approach to meet one’s life goals. A financial plan acts as a guide as one go through life’s journey. Essentially, it helps a person to be in control of his income, expenses and investments such that he can manage his money and achieve his goals. The five major aspects of financial planning are saving, investing, financial protection, tax planning, retirement planning. Some of the benefits of this are: increased savings; enjoy a better standard of living; security during emergencies; attainment of peace of mind etc.

Abhijith S

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