Everyone wishes for a financially secure and comfortable future. Whether it is buying a house, taking vacations, engaging in higher education, marriage or even post-retirement comfort, is all a consequence of financial prudence.
A lack of basic financial education leaves many young adults mystified about money management. When you begin earning, you may realise that as a young adult, you have more disposable income that you can invest, than you’d have later in life.
In the last few years, financial planning has emerged as the gateway to your financial future. Here we look at the components of financial planning and what it entails. We also look at the components of a financial plan in terms of the steps to achieve your financial goals in life.
In financial parlance we often tend to confuse with terminologies. We often get confused in financial planning vs wealth management. But there a substantial difference between them. At a broad level, one can say that financial planning is the all-encompassing umbrella while wealth management is one such specialized focused practice targeted at high net worth individuals.
You must have often wondered as to what is the need of financial planning for individuals. One common question is who needs financial planning? Does it apply to everyone or is it only for certain age groups or certain income and wealth categories.