In the era of insurance agents, distributors and bank relationship managers, we have grown accustomed to buy an arbitrary insurance policy and buy mutual funds on their recommendations and what we see on the television or read on the internet. People who call themselves financial advisors are always ready to take charge and appear more interested in pushing specific financial products at the cost of your real needs and goals and regardless of your net worth of income. Ask yourself, how they so called random advisor could be properly captured everything about your financial life in five to twenty five minutes and manage certain financial aspects of your life? In fact, most people don’t understand the real need of product in their financial life; they are busy to find some new exciting products in which they are ready to want to invest in. They do not consider how long they plan to invest in a product at the time when they begin investing. They prone to think it later, perhaps once they start facing a financial crunch or they feel in trap and are being cheated. It is an irony of every financial life. Feeling sad!
People don’t have Goals
A majority of people don’t have definite predetermined objectives that why they want to invest? In my career as a financial planner there has not been one single investor who had come to me and said, “You have got to help me with my financial goals”. The number one expectation an investor holds in his mind is to pick right or best financial products such as “Which mutual fund is Best?” or “Which Life and Health Insurance policy premium is lowest?” and other similar points. They never talk about their goals, because they don’t have any goals and also don’t know how to set goals. Wealth creation should be all about meaning in your life. If you do not mean it, your financial ship is sailing meaningless and directionless moving stay away from target. People don’t recognize where they want to go, that’s why they don’t understand the real meaning of financial planning, hence they shun from this concept. Financial planning is only and only about YOU and YOUR financial goal. Once you set a goal, you can choose the time required achieving that goal and also an approximate amount you have to generate towards meeting it. While setting a real return to achieve your goal, you can decide which financial product to invest in. The whole exercise will be more satisfying and have less stressed overall.
Financial Planning is NOT product
Financial Planning is neither a product, nor any investment which is tangible. Financial planning, by contrast, is intangible and high personalized service. It is cyclical service that constantly repeats as your needs change over time. Financial Planning is an exercise that helps you to building financial muscle, to face every kind of situation that life throws at you, to bring more completeness in various areas of financial life, to get an external opinion about your financial life. It is an opportunity to be 100% honest in the area of money so that you can work on your discipline level and can make corrections in your messed life. A written document financial plan makes successful to any financial planning services. It tells you whether you will be able to fund your financial goals or not, within your resources and with your future income. A document so called ‘financial plan’ is not only about products, returns and calculations, it is about your financial commitment and what you are going to do now on wards in your life and then sticking to your commitment. It is a long-term journey in which you are not only enjoy the wealth creation, you enjoy so called destination.
Insights on Financial Planning
The financial planning process is a journey of discovery. It not only gives you insight into your own financial affairs, but it may also give meaning to what you are doing with your time and your life. It provides an opportunity for you to challenge your chosen direction and quantify some of your decisions. You won’t discover the meaning of life, but the financial planning process will increase your awareness in your decision making and give more meaning to your direction in life for yourself and your family. Money for money’s sake is not the goal. The goal is to create a challenge for yourself, to provide opportunity for your family and to give your life meaning, and hopefully and ultimately, to help others in need. The aim is to create a better life for yourself and your family by taking control and having more choices.
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Suresh Kumar Narula is founder and Principal Financial Planner at Prudent Financial Planners. He has earned the professional CERITIFIED FINANCIAL PLANNER and got registered with SEBI as Investment Advisor. He writes on personal and financial planning articles and got published in Dainik Bhaskar, Business Bhaskar and The Financial Planner’s Guild, India. He is also a member of Financial Planner’s Guild India ( An association of practicing SEBI registered Investment advisers) to create awareness about Financial Planning in general public, promote professional excellence and ensure high quality practice standards. Suresh received his an M.com from Himachal Pardesh University and an MFC from Punjab University, Chandigarh. He can be reached at info@prudentfp.in