Module 1 Introduction to Financial Planning
Welcome to the first module to start financial planning for financial planning as soon as the first plan is launched. Start investing here because we often have this line here because money is the basis of all transactions in this world Can you remember your first encounter with money Let’s go back to the bottom of the memory lane?
As kids, when we got money from parents or relatives, we would return a piggy so we could buy our first bike to keep a tap on every penny. Piggy Bank and we can regularly guess after the period after which we will be able to raise enough money for the bike so this is the first time.
You face your money but do you understand the importance of financial planning again now let’s take a break Analyze so you can make your life easier so that buying a bike was a goal you had to achieve that you needed money to achieve so you started collecting relatives to pay you at festivals and birthday parties.
When you had your When you went from your parents and relatives to your grandparents, your source of income was to achieve goals at the right time. You started counting and planned to spend less on candy and ice cream. The plan says we have specific goals sometimes it’s a bike sometimes it’s mobile and sometimes it’s marriage.
Consciously or subconsciously we plan our financial success. Through this module we will try to explore these goals. We will try to examine the financial planning process. We understand how the value of money changes over time and how each of our goals is different. Financial strategies are needed so let’s start with a more detailed understanding of financial planning.
Financial planning is enough to buy a piggy bank bicycle or a cricket bat but we cannot rely on piggy to achieve big goals in our life. The plan is effective in achieving these goals. We need to understand the needs and aspirations of our lives. How can we translate these needs and aspirations into financially measurable goals and aspirations?
Let’s invest for our money Let’s answer why money is important Why is it easy because the value of everything is measured financially as a child? We wanted to buy a bike but we knew we needed money for it even though we didn’t earn it and now when we grow up we live for the products and services we use in our daily lives.
You have to travel 10 kilometers every day to get to your workplace depending on how much money you have. In a city like Mumbai, we can say that there are several options for traveling to your office. Either you can take an autorickshaw, it will cost you 400 rupees per day. You can travel comfortably or get on a bus. You will spend around Rs. But you can’t get a car for 100 rupees.
AG or even Rs. So owning a car or a home is a financial aspiration that you want to achieve in a few years by translating financial searches into financially measurable goals. Suppose you want to own a car after one year. The price of your desired car is Rs.00. You have to save Rs 2 lakh per month, your monthly income is Rs 6 lakh and your monthly expenditure is Rs five lakh. You realize that your monthly savings are only Rs 1 lakh which does not allow you to collect the desired amount in a year.
What do you want to do? This extra expense can be the reason for your travel habits or the plan to eat or vacation at an expensive restaurant every week in the summer. You can temporarily give up your lifestyle so that you can upgrade your lifestyle in the future.
This is a small example. Whether it is home or a luxurious honeymoon or your children can be sent to a foreign university or you can retire, you always need to take care to achieve these aspirations.