ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Financial planning will help you create a timeline that you can follow for your goals. It enables you to focus on how you manage your money, plan for saving and investing and manage your time to reach your financial goals so that you can do the things you desire at the right time.

Detailed explanation-2: -Financial planning is a step-by-step approach to meet one’s life goals. A financial plan acts as a guide as you go through life’s journey. Essentially, it helps you be in control of your income, expenses and investments such that you can manage your money and achieve your goals.

Detailed explanation-3: -Financial planning isn’t just about investing; it’s about what money can do for your confidence, security, and quality of life-such as the protection that life insurance offers or the peace of mind that an emergency fund can provide. Research also shows that planning supports sound money habits as well.

Detailed explanation-4: -Financial planning is the process of taking a comprehensive look at your financial situation and building a specific financial plan to reach your goals. As a result, financial planning often delves into multiple areas of finance, including investing, taxes, savings, retirement, your estate, insurance and more.

Detailed explanation-5: -The main elements of a financial plan include a retirement strategy, a risk management plan, a long-term investment plan, a tax reduction strategy, and an estate plan.