“Specific goal-based financial planning,” you must have come across this phrase every time you thought of planning your finances. Often than not, you will hear most of the finance gurus recommend it. However, planning finances of oneself as per the particular goals that one might have for their future, though sounds complicated, in actuality, is not very complex. To ease your understanding on the subject, we at Paisa Invest have decided to dedicate this entire article in the attempt of highlighting everything that you must know about it to secure your financial future and make informed decisions going forward.
What is specific goal-based financial planning?
As the phrase suggests, specific goal-based financial planning is the process of accessing your existing investments or assets available for achieving your monetary aspirations while also analyzing the possible shortfall in the same and suggesting further investment to attain future objectives.
How does it benefit your financial future?
Clarity: Specific goal-based planning helps the client as well as the financial planner to thoroughly understand the customer’s goals and priorities to determine the right course of financial planning to achieve the same.
Combatting future liabilities: As a backbone of financial planning, it helps the financial planner to expertly direct the assets of the client to meet the possible future risk of the same.
Assist in informed decision making: Since this process involves analysing the future financial prospects as well as liabilities of the client, it assists them in making an informed decision. They know what they shall be doing at what scenario once confronted with down the line.
Encourages Positive financial decisions: This process serves to define the goals of the individual. Once the client witnesses their economic advancement, they feel motivated to continue doing the same or make it better in some form.
Increased Wealth: Once the client has vividly defined goals, he starts saving and investing accordingly. Having formed a habit of saving and investing in a manner to better his financial situation, he begins to witness the achievement of his goals along the line. That further motivates him to continue to achieve them in the most time-efficient way, ultimately increasing wealth.
Closer advisor and client relationship: Since it benefits the client to outline their aims and preferences, it further helps the advisor to comprehend the goals, expectations and priorities of their clients and advise them accordingly. That leads to better communication between both the parties to achieve the same.
Hence, are the benefits of specific goal-based financial planning. By specifying your goals, you increase the chances of achieving it within a realistic time frame.
Do you need a professional financial planner in Kolkata to help you specify your finances to achieve your goals? Contact Paisa Invest today!