First step to financial planning is understanding and assessing where you stand. Once you’ve analyzed your financial standing, short term & long-term goals, you will be able to define your needs and the action you must intake to meet those goals and needs. How do you financially plan? What does one need to know to start their financial journey? 

Whether you are at the start of your promising career or working as a middle manager looking to get your finances in shape, you need to know the thumb rules of financial planning in India. It will serve as a basic introduction to understanding the road to financial planning, securing financial protection and ultimately achieving financial freedom. 

1. What do my finances look like?

Before you commence a change such as weight loss, you need to weigh yourself and accept the need to go through a health transformation. Similarly, before you decide to get your finances in place you need to analyze your financial standing and acknowledge the need for the necessary change. A personal trainer and dietician can chart your exercise routine and nutrition intake that’s personalized to your body and lifestyle. A financial planner is your dietician and trainer, your reliable and trusted advisor who will understand your profile, risk capacity and chart a financial roadmap best suited to meet your needs and goals. 

2. Portion Control 

You may have heard of the popular saying, you are what you eat and feed your mind, body and soul. Your finances and its success are dependent on how you power and nurture them. A key thumb rule in financial planning is the 30-30-30-10 rules. 

30% of your income should be spent on meeting your primary and day-to-day expenses 

30% of your income should be used to pay any and all liabilities you’ve to responsibly meet. 

30% of your income should be spent on financial instruments, savings for immediate and long-term dream goals 

10% of your income should be your corpus for recreational activities such as sports, travel, food and more. 

3. Balance Your Intake

Weight loss cannot be achieved in a day. It is important you stay disciplined, focused and consistent to get your desired outcome. Similarly your finances also need to be invested and managed with the right discipline and consistency. You need to power your finances with your own choices as opposed to letting market sentiments or herd mentality cause you portfolio loss.

4. Life Insurance is your protein

A healthy and balanced diet is key to losing weight the right way. Similarly, term life insurance is the protein, a must have in your diet to build muscle strength and ensure financial protection for your loved ones. 

5. Plan, plan, plan in advance 

Good planning is important to getting the results. Seek your certified and trusted financial planners assistance to plan your investments with diversification and your goals in mind. 

6. Don’t fall for quick results 

Fad diets give short-term results and are devastating to health in the long-term. Don’t be influenced by whatsapp forwarded tips or hurt your feet in a market rushed stampede. Before you invest and exit, always consult your reliable financial planner to advice you the path best suited to you, your goals and your purpose of investment. 

7. Teamwork makes dream work 

Clearly define your goals and role-play and that of your financial planners. The sooner you share and address your expectations, the better the financial planner can work with you to make your financial dreams come true.