Importance of Financial Planning

We all have various goals in life, and these goals can differ depending on our age, our society, our education, and circumstances.

Some goals may be universal but some of them are unique.

1. Kid's Education:

One of the primary goals for almost all families is the education of kids. This goal has three distinct phases:

• Schooling: Today, parents often aspire for their children to attend the best schools, which can be a significant financial commitment.
• Graduation: Higher education, including undergraduate degrees, also requires substantial funds.
• Post-Graduation: Further education, such as master's degrees or specialized programs, adds another layer of financial planning.

Planning adequately for these educational expenses is crucial to avoid compromising the quality of education for your children.

2. Children's Marriage:

In India, weddings are celebrated with considerable expense. Many parents spend years saving for this occasion, only to deplete their savings within a month. Sometimes, parents may even incur debt to cover the costs. Strategic financial planning is required to manage these expenses.

3. Retirement:

Retirement planning is critical, especially for those under 30 who might not yet grasp how much money will be needed once their income stops at age 60. With life expectancy rising due to advancements in medical science, the amount needed for a comfortable retirement is increasing. Planning for future needs in earlier years is very much essential.

4. Long-Term Health Care:

A commonly overlooked goal is long-term healthcare. Many people do not set aside special funds specifically for long-term medical needs. Because of this, they may face difficulty.

Proper planning for healthcare can help prevent this financial burden.

Quality-of-Life Goals:

Apart from these essential goals, there are other objectives that enhance our quality of life but are not mandatory. These include:

• Vacations: Planning for domestic and international vacations requires budgeting to enjoy these experiences without financial stress.
• Vehicle Upgrades: Whether it’s a two-wheeler or four-wheeler, you might want to change your vehicle every few years, necessitating financial preparation.
• Home Maintenance: Owning a house involves periodic maintenance, such as painting every 8-10 years, which requires planning.
• Charity, Property Investments, and Passive Income: Additional goals might include charitable contributions, buying property, or creating streams of passive income.

All these goals, while adding significant value to our lives, require thoughtful financial planning. Without it, achieving these objectives can be challenging or even unattainable.

At Tracker Guru, we help the general Indian public in setting these goals in terms of both time and money. We help create a comprehensive plan to ensure you can achieve them and enjoy a well-rounded and fulfilling life.