ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Having a written financial plan gives you a measurable goal to work toward. Because you can track your progress, you can reduce doubt or uncertainty about your decisions and make adjustments to help overcome obstacles that could derail you.

Detailed explanation-2: -Budgeting and saving goals within a financial plan In this case, budgeting and saving are the critical factors. You can’t build wealth without having a handle on your expenses and knowing what you can save.

Detailed explanation-3: -An annual financial plan can help you make better use of your money, ensuring that you live comfortably, are able to deal with any unexpected expenses, and are on the right path to achieve longer-term financial goals and secure a decent income in retirement.

Detailed explanation-4: -A financial plan paints a comprehensive picture of your current finances, your financial goals and any strategies you’ve set to achieve those goals. Good financial planning should include details about your cash flow, savings, debt, investments, insurance and any other elements of your financial life.