What is Financial Planning

 What is Financial Planning
Today 'Financial Planning' has become a fashionable term only. Insurance, Mutual Funds, ranging from financial planning to sell its products all financial companies are using the wrong word. There are a lot of myths about financial planning.

Financial Planning is a very broad subject in which each person's circumstances, needs and risk - taking into account the capacity of budgeting, risk profiling, cash - flow management, debt management, tax planning, investment planning, risk management, insurance planning , is retirement planning and estate planning. Financial Planning to prepare the necessary financial decisions not only short-term but also long-term cost effective option is to assess the results. Financial planning is essential for all those who want to achieve their life goals. Financial planning not only current but also future financial needs may be.

How helpful financial planning in the face of inflation
Financial Planning as follows: the way in the face of inflation

Additionally, a list of necessary and unnecessary expenses is created which helps to rein in unnecessary expenses.

* Management of Emergency Fund: Emergency Fund maintains for each individual so that it can be used at the time of accident. Generally, we fund or savings bank account in cash in return which is non-existent.

* Uncertainty help: Our life is surrounded by uncertainties and we conduct any untoward incident that may end up saving. Risk Management in Financial Planning under the uncertain timing of events such measures are taken to help us financially.

* Cost effective option for us to achieve our financial goal is to resort to various financial products. Today we have various options in the market. Financial Planning is also helpful in choosing the cost effective option.

If you are not able to do your own financial planning Certified Financial Planner (CFP) can also help.