Financial planFinancial planning is a very grey area in our society especially. One of the reasons for this is that the present education system does not impart any financial education. It does not educate the next generation about the importance of savings in building a secure future. Once most people start working they make plans for everything else but for their finances. When one starts to earn all that there is in one’s mind is to learn the skill set that is required at work and how to enhance the same so as to grow in career. This is apart from buying that bike/car and splurging on other things that one dreamt of before starting to earn. Most people do not make a financial plan as to where one should be financially in 10-15 years, neither are most guided by their seniors at work/home.
The first 5-10 years at work are the formative years and most people do not pay any heed to own finances due to being busy at work. Most people start thinking about financial planning 7-10 years into their career when they are slightly settled but by this time most people have a house/car loan, are married and have a family. The burden of EMIs along the high expenses of the family mostly does not leave much room for any substantial savings. Also by this time spending in proportion to the money that is coming into the bank account becomes a habit for many which is difficult to break to set aside money for any further savings that might be required as per the plan. In journey of life, career, personal and financial planning have to go on simultaneously and not one at a time. Thinking that let me get settled in career first then I will think about finances will eventually surprise a person at a later stage in life where one will not be able to make up for the precious years lost. If one does not save well in his first 10 years , he will mostly be making ends meet subsequently especially if one is burdened with EMIs and high family expenses.
Therefore it is very important to make a personal financial plan, save and invest wisely in the first 10 years when one starts earning so as to be comfortable thereafter. When one makes a plan and starts saving and investing early it becomes a habit. Don’t we make a plan for something important that needs to be achieved?, but personal financial planning tends to get neglected mostly because of the lack of guidance. Not having a financial plan makes one think that salary coming into account is meant to be spent.
In this aspect we do financial counselling by discussing your finances, liabilities, future needs and help you chalk out a plan and get started. Once a plan is made and one gets started, savings and investments become a habit and it also ensures financial discipline.
