Financial Planning

The line, "Failing to Plan is Planning to Fail" is a popular line that we often see on advertisements and read in papers.

Most insurance companies and financial consultants have used this line to psycho you into their business. They will introduce you to multiple plans that they say will bring great returns. As a result, many people end up paying for many unnecessary premiums and buy investment products that is not suitable for them.

First of all, the term FINANCIAL PLANNING means the plan of how we use our money. Generally, MONEY is something that we use to exchange for goods and services that we want. Hence, financial planning might sounds like how we plan to spend our money.

In life, we can't avoid spending money. Especially in this modern era, many things can be obtained using money. Money has play a more crucial role in our daily life and the desire to have more money is growing day by day. But is it possible to get things we want without spending any money?

The answer of course is NO. However, it is possible to get back the money we spend today after some time. All depends on how you actually spend your money.

So what's the big deal of Financial Planning? Basically is about how you spend your money. Goods and Services or Investments? We need both. But it depends on our income and our needs.

Goods and Services are for our own satisfaction whereas Investments are for growing our money. We need to decide and allocate a budget for both of the above mentioned to enjoy the maximum satisfaction of the two.