What is Financial Planning? | Finance for Non-Finance Managers

Learn financial planning with your Finance Guru Vishal Thakkar. Pre planning your finances helps you in managing them better.

Ladies and gentlemen welcome back to finance you i am your finance guru vishal tucker with a continuous commitment to increase your financial knowledge which will result into a lot of wealth for you today’s topic of discussion is financial planning financial planning what is financial planning why do we need financial planning i mean we hardly have money to land

Well the idea is financial planning is not required by the people who have lots of money rather financial planning is required for people who aspire to have a lot of money for people who have lot of money there is a separate stream which is known as wealth management out here i’m talking about folks like you and me who aspire a lot of wealth and in turn work very

Hard to generate that wealth in this video we will put a structure to your thought process through which you can create a path of long term wealth creation so what is this structure what is financial planning all about i mean there are tons of books available and there are thousands of consultants in the market trying to sell you products and services under the

Guise of financial planning however i am not here to give you the definition in the explanation of financial planning our focus today is to practically understand how financial planning works and how it can create a sustainable path of wealth creation for you so there are these three things that you need to know before you go and buy insurance or you buy fixed

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Deposit or a mutual fund or any asset class through which you plan to generate wealth what are those three things before i tell you those three things you need to understand one thing there are a lot of software’s available in the market there are a lot of websites available in the market that claim that they can do your financial planning but the reality is that

Financial planning is as unique for each individual as your fingerprint or the retina of the eye and once you learn those three things you will realize why i am saying so so what are those three things point number one investment objective while number two risk appetite and point number three time horizon now you will appreciate the fact that these three parameters

Are unique for each individual so let’s talk about each one of them slightly in detail let’s take the first one investment objective whenever you save money and put it somewhere you have to be very very clear about the objective for which you are investing this money what could be investment objectives well the popular examples could be children’s education which

Will come ten to fifteen years down the line children’s marriage a foreign holiday buying a bigger house a bigger car whatever your objective be map your investment strategy to your objective to ensure that you are consistent in investment and you only exit when the right time comes second is risk appetite now risk appetite is something which is very difficult to

Calculate because some people say they are very risk big risk bakers however in reality they are not some people say that they are very conservative but it is a lot of risk so there are different techniques of finding out the risk appetite of a person and once an appropriate risk appetite is determined an investment strategy could be based on the risk appetite of a

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Person one important point here that the risk appetite would also depend upon the investment objective for example if you are saving for your child’s future you can look at equity because you have a very long horizon but if you are saving for your sister’s wedding which is just two years down the line you may not look at equity because equity would be perceived as

A risky instrument in shorter terms third point time horizon again this one flows out of your investment objective how long will you remain invested how long will you plan if you are planning for your retirement it’s long enough if you are planning for a short term goal like a foreign holiday one year down the line or or or upgrading a car six months from now it’s

A shorter horizon so again the choice of asset class and the choice of investment vehicle would be influenced by time horizon as well so friends financial planning revolves around these three aspects a investment objective b risk appetite and c time horizon so all the best with your financial planning we all know that people from non finance background struggle

To manage their finances they hid the reality when they get their first paycheck and from then on they are all by themselves to manage their money on their own for lifetime it’s like asking you to fly a plane without any formal training it’s very risky so our endeavor through our books our videos and all other mediums to educate you financially so that you don’t

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Outsource managing your own finances to somebody else and suffer because of inefficiencies other people one of the bestsellers and fourth position on the bestseller list finance for non-violence for understanding how financial planning works how to save tax with a civil score and many other interesting financial topics subscribe to our channel finance to the

Banking limit itself point number two the interest rate wine number three the security cover and point number four bank charges

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What is Financial Planning? | Finance for Non-Finance Managers By Finance Tube

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