Are you on the verge of retirement or at a point where everything seems to be working for you in your career? Whatever the case may be, it is of paramount importance to think ahead and have a holistic plan in place for the future.

A study has it that over six out of ten Americans accept the fact that their financial planning needs improvement, and the major obstacle on their way to achieving that is simply not having enough time.

 Having a financially secure future is a goal everyone strives to achieve, but it’s important that the ordinary man on the street understands what it entails. When you leave a life that’s   debt-free, one that enables you to have a total control over your expenses or even increase your savings every month, such a life is craved for by everyone regardless of their financial status.

But achieving this dream has remained elusive—it doesn’t have to be.

The financial marketplace is getting tougher by the minute and only the strong hearted will stay put and achieve their desired goals—sorry if you’re not. You’ll have to rise above the limitations to get there— your plan to own a home just got busted, or your dream to get a college degree seems more like a mirage after you discovered the cost of college education just double. Whatever is the limitation(s), you need a concrete plan for tomorrow irrespective of your income level.

The good news here is that there are practical steps you can take to efficiently make use of what you have at your disposal to achieve a secure financial future. You will agree with me that having a well defined plan of how you intend to live a life free from financial worries is essential.

Here are some of the frequently asked questions about financial planning

What is personal financial planning?

 Personal financial planning is a well thought-out plan that enables you to develop strategies for your financial resources geared towards the attainment of desired goals---either in the short term or long term basis.

 At this juncture, it’s important to note where you’re in relation to where you’re headed, and not just that alone, how you intend to get to your destination in term of your financial goals. 

When should I start planning?

 You may think you’ve got time on your hands, but you will be so shocked when the retirement day comes knocking on your door---obviously, you were not prepared for it--- and you’re left wondering why you kept procrastinating all along. It is important to get started immediately; start now! Time flies

Who prepares my personal financial plan?

 With a CA financial planner, you’re rest assured of clear professionalism, integrity and trust in the most objective way, and also the infusing of experience and expertise, acquired over the years in the field of financial planning. Ensure you engage the services of a full time financial planner.

 What does this entail?

A holistic and comprehensive financial  plan should be one that encompasses all financial aspects there is---net worth, financial goals, your assets, retirement planning, your cash flow and so much more.

Is a full scale financial planning needed?

You may not need one, especially if you’re short of cash. There are different levels of financial planning advice and the one that suit your needs shouldn’t be hard to find.

What is the essence of goal-setting in financial planning?

The role of goal-setting is important in life, and the same goes for financial planning. Have your financial goals laid out on paper in order of importance. These goals are numerous—your children’s education, family care, retirement plans, and so much more-- but ensure you prioritize them.  

How do I figure out my net worth?

For you to secure your financial future, you’ll first of all ascertain your net worth. The first step to achieving this is to put an estimate around your assets. Perhaps you’ve got a home, now is the time to put a figure around it. You can use numerous real estate appraisals to ascertain this. Know your liabilities, for example, car loans and deduct them from your asset. At the end, you’ll have a reliable net worth, you can work with.

How do I come up with a plan for tomorrow when can barely sustain myself at the moment?

First of all, determine your budget monthly. Keeping tabs on big expenses, like payment for your car or even a  mortgage is a simple thing to do. Other basic essentials are what we find hard to grasp ours fingers around. You can put a check on your expenses by writing them down in your diary or use an excel sheet, as the human memory can fail you in this instance.

How much will be appropriate for my savings?

Savings vary with your income level and it’s not constant. A good way to start is by setting aside 10% of your CTC---even if the amount is too high for you, start by put a little amount aside for this purpose each month and then increase it gradually. Investment is a paramount part of your financial planning.

What is the role of insurance in the whole process?

Another essential part of your financial planning is your insurance needs. This industry has experienced great transformations over the years, and a wide array of products has surfaced, which may even be better than what you currently enjoy.

Does a will come into the picture?

And who does not need a will? You alone know exactly how your property should be divided once you’re gone, especially if you’ve got children. And if you do not have one, and you and your spouse die, then the court will entrust a guardian over your children.

How soon should an update be carried  out with the plan?

Once there’s a monumental life event, then it’s time to review the plan. Such life events could be a  birth of a child, marriage, a divorce and so on. And the accompanying change in  your financial status should also be considered too. The update needed to be done could be annually, which put into consideration how the plan is carried out. When you do a review of the plan, also consider the change of your goals and present circumstances.