Financial Planning acts as a visionary statement of one’s monetary life and serves as a guidance document that helps a person to identify his/her monetary necessities, the knowledge about the earning capacity to sustain a comfortable and quality life, and the scope of proportion that one needs to be saved and invest in a logical manner to lead a financially secure life ahead.
Moreover, it helps the individual to plan their future expenses well in advance by making them able to manage their upcoming expenses wisely, such as
- Children’s wedding expenses
- Children’s educational expenses
- Expenses due to loss of business or employment
- Retirement related expenses
Sound financial planning in turn boosts confidence in an individual and gives a sense of freedom to the person that he/she would dream to achieve in real life[SN1] .