Financial planning is the process of systematically planning your finances towards achieving your short-term as well as long-term life goals. It includes strategies for saving towards education, planning for retirement, efficient tax management, and insurance considerations. It is done to ensure wealth creation, through efficient investment of earnings, with a reasonable level of security and limited tax exposure.

Goal Setting: First, identify all the ambitions and expected milestones to be achieved that will make our lives meaningful.  Keeping these in mind, certain long-term and medium-term life goals are fixed within specific time frames, to make the life fulfilling. Of course, safety and security are of utmost importance to live a carefree life.

Financial Plan:  A comprehensive Financial Plan translates these very goals into financial terms i.e. cost associated with each goal is estimated on a realistic basis considering the expected inflation.

Then a financial plan is charted out indicating systematic investment of money to achieve your goals, keeping in mind inflation, real returns, and taxes. A well-balanced financial plan gives due importance to security and financial contingencies that may emerge at any point in time.