We need money for our basic needs but occasionally tend to splurge on unnecessary luxuries. Helps manage incomeĪ good financial plan helps you manage your income better. The following points will help you understand the importance of financial planning 1. You cut on unnecessary expenses and start saving.

It helps you set short-term and long-term goals in life and helps you make financial decisions more easily.įinancial planning instills discipline in terms of managing your money. Recommended Read: Difference Between Financial Planning & Wealth Management Importance of Financial Planningįinancial planning plays an important role in giving direction to your goals. The specific advantages of personal financial planning include greater effectiveness in obtaining, using, and protecting your financial resources throughout your life. You will be able to control your financial situation by following such a planning process.Įvery individual, family, and household has a unique financial position and all financial activities must be meticulously planned to meet specific needs and goals.Ī comprehensive financial plan enhances the quality of life and increases your satisfaction as it does away with all uncertainties about your future needs and resources. For that, you need to have proper financial planning and investments to achieve the goal.įinancial planning can also be defined as the process of managing your money to achieve personal financial satisfaction. 25 Lakh for your daughter’s college education by the time she turns 18.

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