Personal Finance & Financial Planning- By Namita Bhagat

Semi-Qualified C.A. PGDFM BCom.

Secure your financial future and present peace of mind.

Every one makes investments in some form of monetary asset to obtain financial security. Careful planning of one's investments is essential rather than putting the money in every investment opportunity that comes your way and looks promising and lucrative on face of it. One should review his/her financial affairs every six months and analyze the effectiveness of the present investments. Of course, you would need to take help of a trusted professional to take care of your investments, but individual's personal involvement and interest is equally important.

Planning right is not easy and predicting future is even more difficult. But still the financial planning exercise is to be carried out and one should do it wisely. Finance is not only about numbers it is also an emotional and psychological exercise. One needs to understand one's needs, wants and aspirations in terms of money and also have a realistic view about it. Over night riches are possible only with risk of gamble which is a “vice” and one needs to be “wise” for long term and life long financial well being.
Therefore, financial goal setting in various time lines short term, medium term and long term are important and choice of asset would depend on the factors like age, present income, savings, risk appetite, inheritance and life stage needs etc.

Various investment avenues are available such as Bank a/c, Post-office Savings, Bonds, mutual funds, ETFs, Equities, Real Estate, Precious metals etc. One should remember to well diversify the investments in terms of asset class, asset allocation, time frame and risk features. Picture your self as a farmer who would decide what to sow and prepare the soil, water it well and add fertilizers and also take care of it and expect to reap the harvest. Therefore, an individual needs to set and visualize goals and allocate funds in suitable financial instruments with help of a knowledgeable financial/investment planner and review his investments form time to time and modify them as and when required to reap the financial rewards.


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