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Let us start discussing this topic by first understanding what financial planning means(FP)

FP is a step by step approach to meet one’s life goals.

Also let us first try to understand the significance of FP and how early should it take effect in one’ life and what does FP mean to a common man?

As soon as a child reaches an age were he/she understands the significance of money,parents/caregivers start teaching the child importance of FP and how that would improve his/her life for better.It is an exercise that every parent must include as one of the teaching to their child.The child could be taught  about how FP from an early stage would bring stability and control over finance.

FP means differently to individuals belonging to different strata of society.For a lay man who struggles to meet ends FP does not hold much importance as his/her only concern is to feed himself and his family,here FP takes a back seat,however FP can have a totally different meaning to an individual who earns decently.However irrespective of how much one earns one can still plan how he/she is going to spend there earnings.

FP is directly linked to savings,hence one will require to do a small analysis of one’s daily/weekly/monthly earnings minus the expenses.

After one has got a fair idea of how he/she is going to manage their funds comes the next big question as to how could one save or invest the extra funds which forms the basis for any financial planning.

For a layman FP would not mean investing his savings on mutual funds or bonds or stocks.For him/her it would just mean keeping aside some funds locked up in a piggy bank which he/she would have access to any time they want it.For such an individual government run schemes,post office schemes and recurring deposits are some of the simple forms of investment to choose.

However for an individual who earns decently options available for planning his finances are numerous.

He/she could invest in mutual funds,bonds,stocks,real estate, etc.

The key to FP is consistency and it is not something one can achieve in a day or week or month.It requires well thought out decisions and implementation.