Financial Planning – What, Why & How?

Financial Planning


Financial Planning Provides Direction To Your Goals & Dreams

It helps you understand your goals better in terms of why you need to achieve these goals and how they impact other aspects of your life and finances.

Financial Planning Make You Disciplined Towards Money

You do not spend unnecessarily; you start differentiating between needs and wants. You keep a check on your savings and investments.

By Planning Your Finances, You Plan For Your Future

You are able to gain visibility into your finances in future. You have a fair idea on how much money you need for long term goals including Retirement & how long you are going to achieve that.

Financial planning, despite its name is actually more about life than money. It is the process of meeting your life dreams through the proper management of your finance.


A financial planner can maximise the potential of your money and what it can do for you. Financial planning provides direction and meaning to your financial decisions.

Contrary to popular belief, financial planning is not just investing. It is a process. It allows you to manage your finances in such a way that you link it to your goals. Financial Planning is a solution which converts your goals into action plans and provides the direction and discipline to achieve these goals.

Always remember “In the beginning of your career you will work for money, but after few years your investments will work for you” and we plan for it.

A financial plan is based on a personal relationship

No matter where you find yourself today or see yourself in the future, a financial planning relationship with Live-well can help you find your financial balance and bring your dreams and goals more within reach.

The financial planning process all starts with learning about you. We will take the time to:

  • Listen closely to you and learn what you value
  • Analyse your current financial situation
  • Understand your feelings about managing money and investments

Then we will offer personalized advice and guidance to help you reach your financial goals. We have access to a broad array of solutions to help you plan for your confident future.

And once you have a plan in place, you may feel more confident knowing that we will stay with you over time, helping you track your progress toward your goals and making adjustments along the way when your life or dreams change.


1. Identifying your current situation

Taking stock of your current situation is the starting point for a financial plan. It is important to understand your current investments, income and expenses. The quality, accuracy and relevance of the financial plan is hugely dependent on the accuracy of the above data. This is like the foundation of your entire exercise and hence one should spend time to do this as accurately as possible.

2. Developing your financial goals

All of us have aspirations and goals in life. With a super hectic schedule, one rarely gets time to sit and think about what one’s goals in life are, leave alone figuring out how to reach them. Some goals which are common to most of us are educating our children, having a self-reliant and peaceful retired life, moving to a bigger house etc. The process of putting your goals on paper is quite a liberating exercise. Many of you will sleep better at night knowing that you know where you want to be and how to get there.

3. Identifying alternative courses of action

Once you know where you want to be the next step would be choosing your route to the destination. This choice can have far reaching consequences and may eventually decide whether you are able to achieve your goals. It is important to list down various options available to you to reach your destination.

4. Evaluating alternatives

Now that you have various options listed down, you will need to understand the risk and return relationship of various asset classes and your ability to take those risks. Post this you need to navigate the huge maze of products available at your disposal and choose the right one.

5. Creating and implementing your financial action plan

Once you make the plan you map your goals to the action plan decided upon and implement it. The essence would be to implement it right away and stay focused and true to the path you have chosen to take.

6. Review and revise the financial plan

At the cost of repeating myself I would like to reiterate Financial Planning is a process not an event. It is extremely important to keep revisiting and reviewing the plan periodically to account for both changing circumstances and changing aspirations.

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