Financial planning is a generic term that encompasses a long-term process of evaluating one’s sources of income, factoring in recurring expenses and payment of liabilities and thereby arriving at a sustainable financial strategy that not only offers a sound return on investments but also protects you against any potential risks.
Financial planning is vital in ensuring one a secure life even when one is not able to earn from a full-time job due to old age.
Here is a quick look at the components involved in financial planning:
When we speak of financial planning, what is commonly assumed involves investments to increase one’s savings. While this is no doubt an important aspect of financial planning, there are others that gain priority too.
Sound financial plans that consider all the above factors will go a long way towards giving you a peaceful and enjoyable retirement that isn’t thrown into chaos due to any personal upheavals or market shifts.