Financial Planning Will Empower Your Future Goals

May 26, 2021

Undoubtedly, the coronavirus crisis has had a significant impact on the economy. The pandemic has spawned several fluctuations in the financial markets as well as financial circumstances of many individuals. And while some might have been prepared to deal with financial crunch, many never anticipated having to face such abysmal times in their life.

The majority of people are finding it extremely difficult to overcome the financial difficulties arising from the consequence of the COVID-19 crisis. However, we know that sound financial planning can mitigate the effects of some of these events, and the current state of the economy emphasizes the importance of having a strong financial plan in place to protect your financial future.

Recently, a friend of mine Dhriti called me and said, "Mitali, I finally got a new job, after these months of struggle. You know, it's a great profile and despite the pandemic, they have offered a decent remuneration."

Dhriti had lost her job amid the COVID-19 crisis and was experiencing financial difficulties just like many of you. While she had accrued an emergency fund based on my advice earlier, it only lasted 6 months and she was in immediate need for a source of income. She eventually got a new job after a few months of job hunting.

I replied, "Congratulations Dhriti! That is great news and I am happy for you. Now that, you have a fixed source of income again, there may be some changes you need to make in your financial plan and future goals."

Dhriti responded, "Yes, that is exactly why I have called you. Previously you guided me so well and helped me with a financial plan. But, this time it's different, as a result of the financial hardships I faced amid the pandemic, I have lost all my savings and I am back to square one. So, we need to start over with a new financial plan and ensure that it is pandemic proof. "

To which I responded, "I totally understand your point, we will build a robust financial plan and ultimately your financial plan will help you achieve your envisioned financial goals."

Dhriti added, "Mitali, I need to revise my financial goals and you know I have been planning to buy a car, which will be my additional short-term goal to achieve through this financial plan."

I further explained to her saying, "Your envisioned financial goals whether long term or short term will be achieved successfully only if you have an efficient financial plan working towards them"

You see, whether you need to review your existing financial arrangements due to Covid-19, or you are looking to create a new financial plan to ensure that you are fortified and less vulnerable to any future uncertainties, consider financial planning as a crucial task to safeguard your finances and achieve set financial goals.

Financial planning is not just about investing money in various investment avenues. Here are some activities that are linked to financial planning:

However, financial knowledge is the key to constructing a strong financial plan that will empower your future financial goals and enhance financial awareness. Financial literacy will assist you in implementing the above-mentioned points and a path to achieve your envisioned financial goals.

Considering the current unpredictable events caused by the second wave of COVID-19, it is essential to be financially aware and have the relevant financial knowledge to manage your finances properly in order to avoid making any dubious financial decisions.

Therefore, you must consider sharpening your financial knowledge to construct a financial plan that will empower your future goals and help you become a financial guardian to your family.

PS: PersonalFN understands that not everyone holds the adequacy of financial knowledge and here we encourage you to enhance your financial knowledge and become a 'Financial Guardian', who understands the financial planning elements to guide your family through these challenging times.

And in case you are wondering how to become that financial guardian for your family, PersonalFN's latest special initiative, the "Certified Family Guardian" offers you an exclusive opportunity to learn the finer nuances of money management.

Organised into eight modules with 24 extensive videos, the "Certified Family Guardian" will help you with all the relevant tools and learning modules needed to get better at money management. It also offers a host of other benefits to help you make informed investment decisions. Read here for complete details.

So, if you wish to improve your financial knowledge and become your own financial planner to empower your future goals, enrol to "Certified Family Guardian" course today!

Author: Mitali Dhoke

This article first appeared on PersonalFN here.

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