Have a look at the below Financial Pyramid : Save,Plan & Invest wisely for a secure financial future !
Financial planning is an essential part of your life.If you handle your personal finances carefully and systematically you can grab the key to financial freedom easily.
Source @ www.fintrakk.com
Typically a financial process consist of 5-6 stages . financial planning helps you understand the dynamic nature of the financial risks presented and develop a plan that evolves over time to meet those changing needs.
1.Analysing the current financial positions – checking the inflow and outflow of money from your monthly earning and stopping the unnecessary expenditures strictly.
2.Setting financial goals – financial planing is done to achieve goal which are feasible ambiguous goal should not be taken. examples – Buying a house after 5 years , Funding children education after 2 years .
3.Develop the plan – One should develop a realistic plan and one back up plan to achieve the goal set in step 2
4. Evaluate alternatives – Decision making will be an ongoing part of your personal and financial situation. Thus, you will need to consider the lost opportunities that will result from your decisions.
5.Create and Implement a Financial Action Plan – In this step of the financial planning process, you develop an action plan. This requires choosing ways to achieve your goals. As you achieve your immediate or short-term goals, the goals next in priority will come into focus.
6.Reevaluate and Revise Your Plan –Financial planning is a dynamic process that does not end when you take a particular action. You need to regularly assess your financial decisions. Changing personal, social, and economic factors may require more frequent assessments.
Above info graphics discuss about the various financial products where in one can invest and get the good amount on returns.