Essential Financial Planning Tools That You Should Know!
Financial planning is carried out by many. Some are true professionals and some simply claim to know. Financial planning can become a costly affair. However, for those who do not possess the right skills it can become costlier still if they do not follow a well thought out strategy to plan the investments of their hard earned money.
Proper financial planning must be preceded by setting the apt financial planning goals. These are usually Lifestyle, property, inflation, children, retirement and contingency goals.
Some of the tools which can be used are:
There are a number of android applications which are available for this. They will provide such numbers as the amount of tax payable and even help keep track of home and car loan EMIs and interests. These are however not always completely dependable and thus a professional who does this for a living may be sought out.
- Financial magazines and newspapers:
There are newspapers such as the Economic Times and various journals which keep track of the economy. The reading of these can be a great source for providing oneself with the know-how necessary to invest personal finances in a prudent fashion. There are a number of good books available from renowned authors, which may also be referred for personal finance management purposes or even that of a small enterprise.
When investing in the stocks of a company, it is always advisable to have a look at the listed financials of the entity which each company now as per the latest companies act is required to post on their websites. These financials and especially the notes to accounts in them provide a fair insight of the company’s future plans.
There are a number of insurance companies which provide online calculator tools which enable a person to know the amount of premium they need to pay to have adequate life or accident insurance depending on personal criteria. These tools are fairly common and quite accurate. The little where they falter is made right by the company officials.
There can be a number of free options which one may avail. However, the selection of a proper knowledgeable finance professional like a CA or CFA can never be undermined. They are people with the requisite technical skills to handle tricky decisions and make your life easy.
Financial planning needs a clear mind and realistic assumptions. One must take into account critical factors like inflation and also account for unforeseen contingencies.