Financial Planning to Meet Your Future Goals

All of us do some bit of planning to manage our income, savings, expenses, future liabilities whether we understand anything about financial planning or not. While option tips may be managing it well, for now, it may not be the best way to do or it may not give us the best results.

List Current Income & Expenses:

Start with your current income which should include your salary, salary of other working members in the family, any other income like rent, business income etc. Add it all up and remember to also deduct the taxes you'll pay on each of the income to finally arrive at the net income for your family at present.

After having arrived at your family's net income, deduct all expenses like household expenses for the year, tuition fees, loan EMIs or any other short-term liabilities you foresee like renovating the house or a medical treatment etc.

Asset Allocation:

While asset allocation can be done along with goal setting, it is better to understand how asset allocation can impact the success of your financial plan. You can invest your savings in various asset classes with MCX trading tips like equity, debt, gold, real estate etc. Any money invested in IPOs, company stocks, equity mutual funds should be classified as equity, loan EMIs should be classified as real estate etc.

Annual Review & Rebalancing

While a sound financial plan is a good starting point, following it with discipline and rebalancing your portfolio every year is very important. Since life circumstances change frequently, you must relook at your plan along with your financial advisor and make changes to reflect your new circumstances.