5 Actionable Steps to Kick Start Financial Planning Journey

5 Actionable Steps to Kick Start Financial Planning Journey

What is Financial Planning?

It is a process of creating a financial plan for your future, considering your current situation. When it comes to planning, it is important first to understand where you are standing right now and where you want to reach both in the short and long term, based on which a futurist plan of action could be created to act as a guide. The key factor here is to focus on fact-based planning and not just having a vague idea.

Understanding where you are now is the first thing you need to do when starting any financial planning project. It means knowing how much money you have to invest, how much salary or revenue you generate from your job or business and how much money you need to live on. You also need to be aware of how much debt you're carrying and if you have enough saved up to cover any unforeseen expenses.

5 Tips for Different Types of Financial Planning

Financial advice covers a wide range of topics, from tax preparation to retirement plans. Financial planners help clients plan for their future by advising them on everything from retirement savings and investments to insurance and estate planning. There are other areas where you can take financial advice too. Here are some common topic covered in a financial plans:


Budgeting is one of the crucial parts of personal finance. A budget can help ensure that you spend the right amount of money for your current income level. It can also help prevent you from incurring unnecessary debts. This might be the first step you would like to take toward planning your finances well.

Insurance planning:

A financial planner can advise after evaluating your insurance requirements. Financial planners who are also registered insurance agents can offer their clients insurance products. They may be paid for their services, but they may also be biased toward recommending products that generate commissions. However, SEBI Registered Investment Advier (RIA) who have fiduciary responsibility to put the client's interests ahead of everything else and advise based on financial plan will give you advice that works best for you.

Investment planning:

Financial planning doesn't involve managing your own assets, but it can still give you an idea of how much you should invest and where you should put your money. Investing is a crucial part of multiplying your money, but without having a proper plan, you might end up losing it.

Tax planning:

Many financial advisers help their clients in tax planning. They can help you figure out how to invest rightly so that you can maximize tax saving and avoid paying extra taxes. Some financial advisers may also be able to review your tax calculation so that you file your tax return right. It is vitally important that you understand taxes and prepare a plan to deal with it.

Retirement planning:

Unless you're an immortal being from another planet, you probably don't really need to work forever. Planning for retirement helps you plan for that day. They ensure you’ve saved enough money to live comfortably and maintain your current lifestyle in your golden years. Hence it is recommended to start planning for your retirement as early as possible.

Bottom Line:

Financial planning involves taking a look at all aspects of a person's financial situation and coming up with a strategy to ensure they're able to meet your obligations (savings for child education and marriage, savings for house purchase, car purchase, vacation, etc) and achieve your goals. It can be used for a variety of purposes, including tax preparation, estate management, charitable giving, and financial aid. You may be paid by AUA (Asset under advise) percentage basis or by an agreed-upon fixed rate but investing into hiring a financial planner can be your best investment.

About Me:

Hi, I am Salma Sony, Certified Financial PlannerCM and a SEBI Registered Investment Adviser (RIA). I publish articles that educate my readers to take charge of their investments strategically. With my “Financial Literacy Initiative”, I also publish videos on youTube to spread knowledge and awareness about financial planning. All the articles written on the blog are based on my extensive expertise in the field of personal finance. Contact me if you have any queries about financial planning. 

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