The road map to meet an individual’s financial needs, goals & aspiration is coined as ‘Financial Planning. The process generally involves controlling the individual’s expenditure to maximize their savings while ensuring that they are covered well to embrace any unplanned events throughout their lifetime. All individuals who take up financial planning are generally run through a sequence of steps as follows,
1. Understanding their expenses and suggesting effective means to control
2. Understanding their financial needs, goals & aspirations
3. Understanding their risk limitations and setting the road map ahead
Savings are generally invested in a wide range of financial products, which would maximize the individuals returns as determined also while considering the unexpected interim losses against the investment made by the individual which would again be within the acceptable limits of the individual. The process of financial planning doesn’t really get over once its set while it requires a constant follow up to track and analyze the fund growth and taking up all corrective measures.