Ammad Awan Glasgow - Reasons Why We Need Financial Planning

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.

 

The 10 Best Things About Why Financial Planning Is Important

What Everyone Must Know About The Benefits of Financial Planning

Ammad Awan Glasgow - Financial Planning

Ammad Awan Glasgow - How Does Inflation Affect Your Financial Goals

 

Have you ever thought that inflation could dent your beautiful dreams of the future without you even realizing it? Let's explain how. But before that let's talk a little bit about inflation for the benefit of the novice.  Ammad Awan Glasgow says inflation is the rate at which prices of goods and services increase from year-to-year in a country or economy. This means the purchasing power of the currency of the economy falls due to inflation every year as time passes by. For instance, if a pack of biscuits cost INR 20 last year and inflation is currently 5%, the same biscuit pack will now cost INR 21. This means, you need INR 21 to buy the same pack of biscuit this year or the purchasing power of the Rupee has gone down by 5%.

From the above example it is evident that inflation will increase the price of everything that we consume on an annual basis. This simply implies, cost of living increases every year as products and services cost more than what they costed the year before. Ammad Awan Glasgow need more money to spend on the same thing in the future than what we are spending on it now. That is the reason why you ask for a good salary hike every year so that you can still have some additional money after removing inflationary effect from your increment. For instance, if your boss gave you a 12% hike, don't get too excited because the real effective hike or increment that will come into your hands in only 7% after removing inflation.

But you may be thinking, this is common knowledge. What's the big deal about it? Everyone faces inflation. So why should I worry too much about it. The reason you should worry about is that inflation is going to slowly eat away your savings. What you are currently saving for a financial goal may not be sufficient at all when you consider the compounding effect of inflation on it. For instance, you may be saving for your retirement or child's college education or her wedding. You may have assumed a certain cost that you'll incur in future for funding these goals. But have you factored the impact of inflation into the future value of these goals?

Let's take the help of an inflation calculator to do some reality check in life. The inflation calculator helps you find the amount you'll need in future to meet your current expenses.

Let's take an example to illustrate how to use this calculator. Suppose you are 30yrs old and your monthly household expense is INR 30,000. You are planning to save enough for your retirement phase of life that is supposed to begin 30 yrs from now. How will you find out how much money you will need every month to maintain a similar lifestyle 30 years later? Feed in the following input into the inflation calculator: Value of Current Expense = 30,000, Rate of inflation = 5% and Time Period = 30yrs.

What do you get as the future value of your monthly expense that grows just at the rate of inflation and this calculation assumes you will maintain the exact same life style that you have at the age of 30. The answer is 1.3 lakhs per month. This is the money you'll need every month to live the same life at the age of 60. If you want to improve your lifestyle which is bound to happen by the time you are ready to retire, the amount required would be more than 1.3 lakhs.

Ammad Awan Glasgow - Business Growth and Predictability

 

Being predictable is often times a negative. AmmadAwan Glasgow can lead in business strategy to great success. For instance, if you discovered a formula that works why not use it every time? Now, being predictable isn't about staying the same year after year. It's about knowing which behaviors to exercise, once you've discovered their success, at each stage of business growth.

Up and Running. This is where you experience the struggle of bringing it all together. You're interested in momentum and traction. Cash flow is king. Is there enough money to make payroll?

Can't Keep Up.  AmmadAwan Glasgow says This is the stage of fantastic growth. Everyone is buying. It's the fun and exciting stage. This is where you sell, sell, and sell some more. As with each stage, there are seeds that lead to the next stage. During the Can't-Keep-Up stage you will find contributing factors to growing too fast.

Rough Waters. This is the stage where you need systems and processes to track your ways of doing things. Now, there are rules. What? Never needed them before! Because you were growing so rapidly in stage 2 you are now asking, "Am I making a profit?" Overhead is high. Number of employees is high. The need to manage profitability is high.

All of this leads to control measures being implemented. Now you are beginning to rock the boat. It's hard to come from a stage of fun and excitement to quality control and money management.

Predictable Triumph. This is the stage where, once you survive the rough waters, you and your business can set and reach results predictably. The part that makes this stage interesting is the fact that you have survived the Rough Waters stage. You know how to manage in this cycle; Rough Waters to Predictable Triumph. Your business will continually experience changes due to the economy, new products, new markets, and so on. But the smart businesswoman knows, because she can predict, how to not only survive but through this cycle.