1.    Determine your present day financial state of affairs

2.    Develop your economic desires

3.    Identify opportunity courses of movement

4.    Evaluate alternatives

5.    Create your Financial Action Plan and implement it.

6.    Review and revise the financial plan

Importance of Financial Planning

Inflation

Future Financial Planning Inflation Benefits is called the largest purchasing power destroyer. In the Indian context, if calculated in 1979 with the factual figures price of Rs. 100, this year as on (September 2015) is Rs. 5.55 and will go further down. It's a fall in money value. This is because demand is growing more rapidly than supply, leading to a price hike. Considering the current times and the expected changes in the future, this may continue. Today is the day one should be actively planning finances to sustain inflation in the future. Financial planning ensures that you maintain inflation while remaining unaffected by your goals.

Long - Term Goals

The creation of long-term wealth, financial planning Some milestones in life are very important. Whether it's a family car, your own home, the education of your children or their marriage; fulfilling these needs is a responsibility. Financial planning is a process of drawing up a proper financial plan in a specific period of time to meet your financial goals. Planning early is better as investment options can earn high returns over time. Investing your money from now on will make such long-term goals easier to achieve.

Emergencies

Prevention is better than cure, and getting ready is better than regret when it comes to money. Before your goals, there may be inevitable and unexpected times that may become hurdles. Financial planning means being prepared for such situations without affecting primary goals. Providing your family with security is an important part of financial planning.

Dreams

Financial planning is a step in your dreams. You might have been thinking with your family about a foreign trip, an independent house, or living a dream. May the dreams never disappear because of responsibilities! Financial planning supports your dreams while performing your duties.

Retirement

While meeting your family goals, having a comfortable retired life is a general goal. If after more than 10 years you are planning a retirement, you should plan to invest from now on because the magic of compounding is experienced if it remains invested for a long time. Financial planning helps you create an adequate retirement corpus when expenditures continue but income appears to dry. Considering investing for the goals of your life is advisable. Plan for a better future today.