Comparative Study of Personal Financial Planning Essay

It is generally seen that plenty have a misconception that pecuniary be after is about saving more and pass less moreover that is not the case, it is more about saving the right amount so that future goals can be met. The objective of monetary planning is * To determine that the right amount of money is available in right detention at right point of clock time in the future to touch the desired goals and objectives. It * Provides direction and meaning to your financial decisions. * It allows you to understand how each financial decision you make affects other areas of your finances. Financial planning and coronations can be undertaken by anyone with a clear assessment of ones influx of funds and the goals that need to be achieved from time to time. Keywords Financial planning, wealth management, dowerment instruments, real estate Introduction Financial planning is achieving your financial goals in the most efficient manner. The broad areas of financial planning include cor onation planning -Your wealth lead only grow over time if you have localizeed it in assets. Investment planning deals with the kind of investments an individual should invest in to get the best out of his wealth.In this the risk and go profiling of an individual is done based on his life stage, spending requirements with respect to his income and wealth, time horizon and liquidity requirements and various individual peculiar(prenominal) constraints. Investment Planning is important because it helps you to derive the maximum benefit from your investments. cash in flow planning  In simple terms, cash flow refers to the influx and outflow of money. It is a record of your income and expenses. Though this sounds simple, very few people actually take time out to find out what comes in and what goes out of their hands each month. hard currency flow planning refers to the bear on of identifying the major expenditures in future (both short-term and long-term) and making pl anned investments so that the required amount is accumulated within the required time frame. Cash flow planning is the first thing that should be done front to starting an investment exercise, because only then will you be in a po tantalizeion to know how your finances look like, and what is it that you can invest without causing a strain on yourself. It will also modify 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 back and relax or enjoy your life by reaping benefits of what you light up in so many years of hard work. But it is easier state than done. To achieve a hassle-free retired life, you need to make prudent investment decisions during your working(a) life, thus putting your hard-earned money to work for you in future. Planning for re treat is as important as planning your career and marriage.Life takes its take course and from the poorest to the wealthiest, no one gets spared. We get older every day, without realizing. However, we fall upon that old age is never going to touch us. The future depends to a great extent on the choices you make today. Right decisions with the help of victorian financial planning, taken at the right time will chequer smile and success at the time of retirement. Retirement Planning acquires added splendour because of the fact that though longevity has increased, the number of working years havent.Tax planning  Tax evasion is illegal but evaluate minimization is legal. Thus 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 early Planning is to create a corpus for foreseeable expendit ures such as those on higher education and wedding and to provide for an adequate certification cover during their growing years. Savings alone is no longer enough.