{"id":10006,"date":"2021-01-07T16:03:46","date_gmt":"2021-01-07T10:33:46","guid":{"rendered":"https:\/\/www.mintyapp.in\/blog\/?p=9565"},"modified":"2021-08-23T12:04:15","modified_gmt":"2021-08-23T06:34:15","slug":"personal-financial-planning-why-is-it-mandatory-for-all","status":"publish","type":"post","link":"https:\/\/blog.fintoo.in\/blog\/personal-financial-planning-why-is-it-mandatory-for-all\/","title":{"rendered":"Why is Personal Financial Planning mandatory For All?"},"content":{"rendered":"\n<p>Are you an earner? Or a non-earner? Whoever you may be, you certainly need to know personal financing. We all want to be stabilized financially, at least to fill current &amp; future standard of living. Your money is the only thing that earns for you, that too for free! Then why not to make optimum use of it? Why not to plan to easily fulfil our goals\/wishes may&nbsp;it be short term or long term.&nbsp;You never know what\u2019s coming up in your life next minute\u2026 whatever may it be, you are gonna earn &amp; spend even after your last breath\u2026 Right time to think upon this is now! Well! It\u2019s neither a cheesy plan nor a scheme which will give 200-500% returns. It\u2019s an effort to make you understand WHY!<\/p>\n\n\n\n<p>Personal finance is nothing but your OWN money to plan for\u2026. All you need to do currently is to plan your needs &amp; invest accordingly so that you get back the right amount at right time.<\/p>\n\n\n\n<p><strong>Related Article :-<\/strong>&nbsp;<a href=\"https:\/\/www.fintoo.in\/blog\/quick-tips-for-financial-planning-in-2021\/\">Quick tips for financial planning in 2021 &#8211; Fintoo Blog<\/a><\/p>\n\n\n\n<p>As laymen you might be coming across many questions eg:<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Let\u2019s understand the obvious complicated reasons why it\u2019s mandatory to plan:<\/strong><\/h5>\n\n\n\n<ol><li><strong>Lifetime Cash flows:<\/strong>&nbsp;\u2018Money earned today is a money spent tomorrow\u2019&nbsp;You know your basic expenses whether fixed\/variable which is to be spent for a lifetime may it be regular bills, food expenses, the standard of living expenses, dependency expenses, what not\u2026<\/li><li><strong>Asset Allocation: Investment<\/strong>&nbsp;strategy that aims to balance risk and reward by apportioning a&nbsp;portfolio&#8217;s assets&nbsp;according to an individual&#8217;s goals, risk tolerance and&nbsp;<strong>investment<\/strong>&nbsp;horizon.&nbsp;<strong>Asset allocation<\/strong>&nbsp;means investing an individual&#8217;s&nbsp;<strong>assets<\/strong>&nbsp;to meet a&nbsp;<strong>financial plan<\/strong><\/li><li><strong>Dreams:<\/strong>&nbsp;\u2018Money earned today is to fulfil your lifetime dream tomorrow\u2019&nbsp;Your main purpose of earning or saving is to lead a life as per your dreams. You know your dreams &amp; the money required to fulfil it. May it be owning a Home or a Foreign tour or a status car or to give the best gift to parents and children or to follow your dream career prospects. You will require a risk appetite to go for your desired path before you decide to change the living.<\/li><li><strong>Uncertainty &amp; risks:<\/strong>&nbsp;\u2018Money spent today is a loan tomorrow\u2019 &nbsp;You know life takes a down-turn for which you need job security, a good economy, it may even come as accidents. Uncertain events to test your preparedness are bound to come, an option to face it is by financial loan or a pre-planned readiness.<\/li><li><strong>Earnings:<\/strong>&nbsp;\u2018Money saved today is a money earned today\u2019&nbsp;You know your income and respective savings. You know the more you save the more you will be relaxed for the future. But just savings are not enough. Let your money earn for you as well and let it give you good returns.<\/li><li><strong>Returns:<\/strong>&nbsp;\u2018Money invested today is extra money received tomorrow\u2019&nbsp;The money you save, the money you invest, the return you get is an important thing of your life. If you save but not invest then returns will be nil, in fact, you will realise a negative income due to increasing inflation. Returns should be equivalent to increasing cost of living with minimum risk an individual can take.<\/li><li><strong>Expenses:<\/strong>&nbsp;\u2018Money saved today is a lump sum spent tomorrow\u2019&nbsp;You know forthcoming events to which you require a huge cash outflow. It can be a marriage or medical expenses or a child\u2019s education or for other functions.<\/li><li><strong>Retirement:<\/strong>&nbsp;\u2018Money earned today is a money essential tomorrow\u2019&nbsp;You know at a point all you will be doing is to sit back whole day and cherish the entire life journey with a cup of coffee at your own farmhouse. Don\u2019t you want to spend a few years with no tension surrounding you forever at that point of time.<\/li><\/ol>\n\n\n\n<p>There are en-number of reasons I can give to plan your finances today, but how much of it can you give yourself? You don\u2019t need me to make you realize or count the reasons of why to plan your personal finance. All the reasons enumerated above are already known to you, the difference is that you haven\u2019t realized it yet.<\/p>\n\n\n\n<p>A survey reveals that finance related topics are important and there is an unawareness amongst working people about it. The results even show that retirement planning is very important along with long-term financial planning. The survey suggests that future educational drives\/programs should focus on importance of personal finance &amp; its basics where people have inadequate knowledge. Hence, we conclude that, overall awareness amongst people can bring knowledge about personal finance\u2026<\/p>\n\n\n\n<p><strong>Related Article :-<\/strong>&nbsp;<a href=\"https:\/\/www.fintoo.in\/blog\/8-common-investment-mistakes-you-must-avoid\/\">8 Common Investment Mistakes You Must Avoid &#8211; Fintoo Blog<\/a><\/p>\n\n\n\n<p>Once you learn &amp; appreciate the importance of planning your personal finance and its impact, you will see lot of opportunities to increase your wealth &amp; improve your personal finance plan and knowledge. All you need is an active mind and a proper guidance so that your finances are in your hands and you lead it. Set up and make your own future.<\/p>\n\n\n\n<p>To Invest and keep regular track of your portfolio download: Fintoo App Android&nbsp;<a href=\"http:\/\/bit.ly\/2TPeIgX\" class=\"broken_link\">http:\/\/bit.ly\/2TPeIgX<\/a>&nbsp;\/ Fintoo App iOS&nbsp;<a href=\"http:\/\/apple.co\/2Nt75LP\">http:\/\/apple.co\/2Nt75LP<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Are you an earner? Or a non-earner? Whoever you may be, you certainly need to know personal financing. We all want to be stabilized financially, at least to fill current &amp; future standard of living. Your money is the only thing that earns for you, that too for free! Then why not to make optimum [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10846,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","footnotes":""},"categories":[351],"tags":[350,92,415,416],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why is Personal Financial Planning mandatory For All? - Fintoo Blog<\/title>\n<meta name=\"description\" content=\"Personal financial planning is planning for your OWN money. 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Or a non-earner? Whoever you may be, you certainly need to know personal financing. We all want to be stabilized financially, at least to fill current &amp; future standard of living. Your money is the only thing that earns for you, that too for free! 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