Many may wonder – “Do I really need a financial plan?” Some feel that saving regularly in bank recurring deposits or Systematic Investment Plans (SIPs) of mutual funds does the job of allocating their savings to investments. However, ad hoc investments lead to inefficient utilisation of your financial resources.
A financial plan ensures that you are well equipped to deal with dynamically changing circumstances at a personal level as well as a macro level. In the absence of a financial plan, you might not be empowered to accomplish what you have dreamt of achieving and might also be under-prepared to deal with contingencies.
While it is important to spend time trying to earn more money, it is also important for you to spend time to figure out the right way your money is invested with a proper financial planning.