Why do we need financial planning?
Financial planning is an essential step that must be taken, in order to secure your financial well-being through time. At different life stages, you will require substantial amounts of wealth, not to mention, living an exuberant lifestyle on a budget. This is where financial planning comes in. For instance, if you are planning to buy a car at age 25, a house at age 30, and get married at 32 years. These are substantial expenditures, for which you must plan accordingly. Financial Planning is nothing but creating a well-chalked-out plan to meet your short-term, mid-term as well as long-term financial goals based on your asset allocation and risk profile. So, in order to do a proper financial plan, you also need to understand your risk-taking capacity, i.e. your risk profile and then determine your asset allocation. Thus, by creating a Financial Plan, you will be able to understand which…
