Can Financial Planning be done by Self.....???

In the Present Scenario planning is a necessity for everyone. Many think planning is required for only big plans or it is a tool for corporate, but Planning is required for Individuals also, to plan their finances at every stage of their life. Financial planning is nothing but the process of meeting life goals through a proper planning and management of finances. It helps an individual as well as corporate to translate their dreams and aspirations in to reality. It also helps you to provide meaning and direction to your financial decisions. Financial planning has to be done in a proper way, so that it can be implemented effectively.

Financial planning includes Personal Financial Planning as well as Corporate Financial Planning.

Personal financial planning consists of
* Educational Planning
* Health or Medical Insurance
* Tax Benefits on Housing loan
* Tax Benefits on Educational loans

Corporate Financial Planning includes
* Income Tax planning
* Risk Management/Insurance Planning
* Investment Planning
* Estate Planning.

Financial planning is important because it helps to manage your income more efficiently. It is important to increase cash flow and to keep an eye on spending habits and expenses. Proper financial planning will help in determining what should be done to create cash flow in order to make investment possible. It helps to build a long term capital-base and shape your financial future in terms of savings. With a strong capital base, you can have a wider portfolio of investment and it will help you to increase the wealth and to reduce the risk of investment. It helps us to distinguish investment opportunities appropriate to your financial situation. Financial planning can help in assessing the best investment opportunities. A good investment planning can transform your dream goals into realities. It is very important for your family to have financial security. This is possible only through proper financial planning with proper coverage and taking right policies. A systematic and structured saving and investment plan can be provided to fund children education and to secure a comfortable retirement.

4 Important Steps to follow while Planning your Finances
* Analyzing Dreams
* Analyze your Financial status
* Proper Financial Planning
* Action the plan

Analyzing Dreams
In India most of the people have not analyzed their dreams and the ways of realizing the same. So it is very important for you to analyze your dreams so as to convert it into reality. Now you have to translate your dreams and aspirations in to money. Define the time frame within which you should be able to realize your dreams. If you think, it is difficult to meet all your goals within the specified time frame, prioritize your goals based on urgency and importance.

Analyze your Financial Status
It includes inventory of assets and liabilities (including securities holding, debts, insurance, etc), A description of the present arrangement for distribution of assets at death, Estimates of your income and expenditure, details of your insurance coverage and now analyzing Emotional status is very important, while designing a financial plan for you. It will decide your strength to take risk or not now. Develop a plan, the plan which you design, should take your present financial situation to the achievement of the objectives.

Proper Financial Planning
Based on the above steps, comprehensive financial plan should be framed which contain an analysis of all pertinent factors relating to your financial status. Your financial plan should consist of your personal data, goals and objectives, mention your issues and problems, specify assumptions, mention the balance sheet/ net worth for the financial year of your company, their should be proper cash flow management. Merely designing a plan, no matter how sound, does not constitute financial planning.

Action the Plan
A financial plan is useful to you only if it is put in to action. You have to ensure that the implementation is carried out in the manner and in accordance with the plan designed. Now it is very important to monitor the plan. Periodic reviews are the best form of monitoring. You should keep flexibility for a review if circumstances demand.