Financial planning, explained through a story!

1. Destination: Financial planning Series 1

2. Presenting Rahul.. Rahul loved to drive and explore He lived in the present, did not care for ‘tomorrow’ He decided to go for a weekend ride Rahul wanted to go from Mumbai to Ahmedabad by road He set off, on a Friday with a rucksack, some cash and out to explore the roads. He lost his way in between. He tried taking short cuts but ended up getting lost in forests He thankfully found people who gave him directions. Some were correct, others, grossly wrong He reached Ahmedabad in 14 hrs instead of 8 hrs. Weary, tired, bored.

3. Presenting Rohit.. Rohit loved biking too. He was passionate about it and had planned a weekend bike ride to Ahmedabad almost a month back He activated google maps on his cell phone He spoke to travel agencies about the coolest route to the place and roads which had to be avoided He stuffed his rucksack with maps, phone nos., books, gadgets and plenty of food He decided the correct time to leave and journey Within 8 hrs, he reached Ahmedabad, having enjoyed the bike ride without a single glitch.

4. What’s your story? Most of us are like Rahul, wandering, unplanned, wanting to shun anything to do with plans and tomorrow We eventually reach our goals, but by then we are stressed, bored, tensed and we end up screwing up the journey instead As much as we hate it, financial planning needs maps, guidance, directions and everything that helps us enjoy life’s journey.

5. So what’s in it for you? Don’t you already contribute to your PF, EPF, tax savings etc? Don’t you ‘save’ whatever is left after meeting your expenses? Of course you do, then what is financial planning all about? FINANCIAL PLANNING is a planned approach to your entire life. It includes things like insurance, taxation, housing, retirement, estate planning and so on.

6. So how does financial planning come around? A holistic look at your current stage in life, earnings, savings, investments Money that is left over after expenses is NOT the ideal amount for savings To know how much to invest, you need to know how much to save, to know how much to save, you need to PLAN.

7. So what now? We will get you this detailed and comprehensive information in part 2 of this series on Financial planning. Stay tuned. Join us on Facebook for regular tips, updates and interesting stuff on http://www.facebook.com/update_security_info.php?wizard=1#!/pages/Fundoo-Finance/174437115929814 Visit us at www.precioussolutions.biz

8. Credits: Outlook Money article Precious Solutions Financial planners