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What is Financial Planning
This video explains What is Financial Planning in a Simple Way. Financial Planning Ratios, Concept of Insurance, Investing and Cash Flow is explained in this 3 min video. Now Financial Planning can be simply understood.
many people find financial planning complex and simply choose to put it off others may be confused it’s actually pretty simple financial planning simply put is charting and following a roadmap to get from where you are to where you want to be 10 15 or 20 years from now it’s like bringing your family for a road trip your parents spouse and of course the children you start from getting to know your current financial position what financial resources or assets do you already have in place what sort of liabilities do you have and how much how’s your cash flow position is it enough to power your journey from your financial position financial ratios can point to areas of attention are you saving enough are you borrowing too much or too little are you paying too much bad debt next you want to know what destinations you want to bring your family say sending your children to university owning properties giving you rental income or retiring rich in the bahamas write down those goals and put down the timeline and amount needed a general road map can then be planned out taking into account the distance time and resources needed next determine the optimal asset allocation needed to achieve those goals it has to match risk and return needs and your loss aversion it’s like choosing a car for the journey depending if you like to go fast and furious or slow and steady you may want a ferrari a four-wheel drive or something in between given your resources it may not be realistic to reach all the goals in the time that you’ve initially planned in that case you may need to adjust the goals or adjust your finances like cutting unnecessary expenses eliminating bad debt or increasing leverage on the other hand if the goals mean so much to you you may just need to drive a little faster and work a bit harder as you plan the roadmap you’ll need plan b or plan c to deal with contingencies like medical bills loss of income due to disability or even death so that the family can still reach the destination you planned out and off you go as all road trips go they never happen exactly the way you planned there may be road bumps obstacles distractions maybe even disasters that take you off the path along the way you may need to slow down when there is a hazard ahead and take advantage of opportunities to speed up when you ultimately arrive at the destination you’ll want to be in a position that your money is now working for you instead of you working for your money and that’s financial planning explained
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What is Financial Planning
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this is really good and helpful. everyone should watch it no matter how sophisticated or naive they may be!
Can u explain the basic elements of financial planning
This is awesome, got a lot of info to make my presentation to my client more effective 🙂 Thanks
You can work hard if you gave this types of video it worth.
Medical bills???
Read more here-
https://support-arpit.blogspot.com/2023/07/financial-planning-made-easy-secure.html
Thank you sir.
Great video! Some key points were highlighted that I hadn't heard anyone else discuss. Thank you!
I’d be retiring/working much less in 5 years and curious to know best how people split their pay, how much of it goes into savings, spendings or investments. I earn around $150k per year, but nothing to show for it yet
The most important aspect of what gives us peace of mind is financial security. It's key. This must get priority over everything else.
I love this