Having a
comfortable life is something everyone wants. Ammad Awan Glasgow sure that he also planned for a successful
professional and personal life and have decided upon important goals in life
like buying a house, getting your children educated and married, going on a
foreign tour, etc.
However, have
you started to carefully plan for it?
Without a
well laid out plan, most of these dreams will have very little chance of
getting fulfilled. All of these will require one common thing, i.e. money. So
unless you manage your finances properly, the chances of fulfilling these goals
will remain slim. Financial planning is what will help you to reach your life
goals in style by helping you to manage your finances well.
This is
somewhat similar to preparing for a vacation tour. If you plan well then you
will reach your destination quickly and comfortably. Otherwise, you might end
up on the wrong route the entire holiday will get spoilt. Similarly, without
financial planning, you might end up wasting your money and jeopardizing your
future.
Financial
planning is what everyone needs, irrespective of their age, income, gender and
country of residence. Unlike what many of us think, it is not a one-time
activity. Instead, it is an ongoing process which has to be repeated at regular
intervals to ensure that the plan that has been created is being followed and
the decided milestones are being met.
Ammad Awan Glasgow says financial planning should be
done only when you gather enough money to justify the activity. However, this
is just another myth. You can start with a small amount and the sooner you
start doing financial planning, the better it is. Achieving your life goals
will require you to do careful planning and starting off with financial
planning early in life will give you enough time to reach your goals
comfortably.
Insurance planning:
Insurance is a must have protection for all
of us. These days, the medical and hospital bills can easily run into lacs of
Rupees and it can cause immense financial strain if someone in your family
falls sick.
Similarly, if the earning member of the
family expires, then there is a loss of income which can also jeopardize the
financial stability of the family. Having a life insurance and a medical
insurance can help you to tide over such crisis comfortably.
Financial planning will tell you how much
insurance cover you need and what are the best insurance policies that you can
look at.
Creation of an Emergency Fund:
Financial planning will also help you to
build an emergency fund which will prove to be very handy should something go
wrong. This emergency fund will help you to bridge the financial problems that
you will face in the event of a sudden job loss or an unforeseen expenditure
coming up. The thumb rule is that you should have an emergency fund which
should be enough to cover 3 to 6 months of your household expenses comfortably.
