Financial Planning

In order to achieve the financial goals financial planning is very important. Financial planning includes planning for short term and long term investment. Some companies avail the service of financial planning professionals in order to do financial planning for their business.

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In order to achieve the financial goals financial planning is very important. Financial planning includes planning for short term and long term investment. Some companies avail the service of financial planning professionals in order to do financial planning for their business. While taking any decision for the long term investment they consult the financial planner so that they can achieve business objective and will not suffer from any financial loss.

There are number of the people who want to know why financial planning is necessary for their business. Finance is the blood of any business. It is impossible to achieve business objective without it so in order to run successful business financial planning is necessary. It includes decision where money to use and where to invest.

Time period for financial planning

The financial planning is different for different business. It can be done for short duration i.e. Investment of money for less than one year. In some business longer financial planning is done which is executed for five to ten years. Planner helps you to plan for two years also if the duration of any project is two year. It is best for you and your business to do financial planning and execute accordingly.

Why to do financial planning

There are thousands of reasons which clearly tell about the importance of the financial planning. There are many big organizations who hire financial planner in order to do financial planning for the business. Planner has skills and abilities to identify about the different risk factor and plan them properly in order to reduce them. Through proper financial planning any business can archives his business objective. Given below are some reasons

Best way to generate more income

Many types of financial institutions give large interest on the money deposited in the account. It is the best way to get additional income.

Inflation

It helps in the saving of money from being loss due to inflation. If proper financial planning is done then it is easy for any business to deal with inflation issues.

Creation of emergency cash reserve

If company do proper financial planning then it will be easy for the business to save them at the time of crises. Emergency can be arising at time so financial planning helps them to get emergency cash.

Saving of money

Through financial planning money can be saved and that can be used for long term projects. Many businesses do planning in order to generate cash for big projects. If you want to save more money and want to earn more profit then financial planning is very important.

More flexibility

If why financial planning is important is question in your mind then this reason help you to get the answer of your question. Through proper financial planning flexibility can be increased.

More liquidity

Proper financial planning is the only way through which more liquidity can be obtained. You only need to hire the best financial planner in order to increase liquidity. By proper planning you can plan in better way about the resources and execute accordingly.
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Did you realize that for doing a two-year MS within the US, you’ve got to pay a mean tuition fee of USD 40,000, which roughly involves around INR 29,60,000? And you certainly need to keep aside approximately $15,000 towards your living cost within the US for 2 years.

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therefore the expenses don’t stop just at that,Why is financial planning important for education abroad? Articles you furthermore may got to distribute a considerable amount on VISA, application, admission tests, travelling, and so on. So, we see that albeit we keep our calculations conservative, an Indian student headed for a two-year MS within the US has got to keep a minimum of $58000 for the program! This number is certainly quite high and a serious reason why thousands of Indian students shelve their dream of studying an MS within the US.

But there’s how to form your MS within the US dream come true. Adequate financial planning – whether you propose to require an abroad education loan or self-fund your education – may be a sure-shot way of doing an MS within the US with no financial obstacles. In this blog, readers won’t only understand why financial planning is vital but also some recommendations on the way to plan their finances wisely when getting to do an MS from the US. allow us to begin with none further ado.

4 Reasons Why Financial Planning is vital

Listed below are 4 reasons why financial planning is vital for creating your study abroad dream come true.
Whether students are self-funding their education abroad or taking an education loan for it, financial planning will keep them informed about their cash inflows and outflows which can help them stick with their budget and make their financial path a cakewalk.
Financial planning will assist you not only lookout of your expenses when living abroad but also assist you consider your studies, extra-curricular and co-curricular pursuits with one minded focus. together with your finances taken care of and planned well, you’ll not need to constantly worry about paying your tuition fees, bills, etc.
Having a budget will assist you avoid unnecessary expenses and burn a hole in your pocket. Students can create a budget and stick with it. Without a correct budget in situ , you’ll spend on designer dress or parties with no second thoughts. Financial planning will help them know the difference between their needs and needs. Since students are going to be conscious of their cash inflows and outflows, they will attempt to supplement their income by finding a part-time job within the country of their stay or maybe attempting to get a scholarship or aid . they will use this extra income just in case an unexpected expense arises or just pay a neighborhood of expenses too.

Four ways during which you’ll plan your finances and expenses better

Now that you simply know that financial planning is extremely important, it’s time to debate some methods which will help readers plan their finances and expenses better.
Take a overseas education loan instead of self-funding for abroad studies. In fact, an education loan is one among the simplest ways to finance your education loan abroad. Most Indian banks provides education loans for abroad studies at varying terms and conditions. Look out for the simplest bank for an education loan that gives education loans at the foremost favourable terms and conditions. Education loans don’t just cover the schooling fees for your MS abroad but also cover a neighborhood of study-related expenses and living expenses. attempt to look out for education loan subsidies too since they cut the expenses by a serious portion. If you’re unaware about the way to take an education loan, you’ll get in-tuned with GyanDhan and know more.

Keep a lookout for various scholarships that you simply are eligible for and apply for them. attempt to determine information about the small print of scholarships offered not just by the University but also by private organizations. Getting a scholarship will help readers lower their financial burden while studying abroad. And if they need to take an education loan, the scholarship amount can lower their financial debt too.

Most countries allow international students to work a hard and fast number of hours. Determine that and take up employment that suits you. Students must, however, remember that while working part-time, they need to make sure that their academic performance doesn’t suffer.

Get a student card and make use of it. A student card will assist you get discounts while shopping, travelling, eating out, etc. this may assist you save your hard-earned money.

Studying abroad has definitely become expensive but it doesn’t me

o financial planning means bigger financial risks

dentifying proper financial goals and planning to achieve them in a systematic way is the heart of financial planning.

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No financial planning means bigger financial risks
Identifying proper financial goals and planning to achieve them in a systematic way is the heart of financial planning. Without a proper chalked out financial plan,No financial planning means bigger financial risks Articles there are a lot of risks. Often we find people without a proper retirement corpus and no money to bank upon because they haven’t planned for it in advance.

Not understanding the risk profile is another major drawback that a person faces if he hasn’t done proper financial planning. Imagine a retired person putting all his savings into a high risk mutual fund in anticipation for a high return, and loosing a major chunk of his hard earned money. At a time when he required a steady, stable income, he has simply wiped out his savings. Financial planning reduces the risks of loss by removing impulsive decisions through a seasoned and planned financial advice.

Besides planning for emergency, understanding the investment strategies and risk profiles, a financial plan helps you prepare for major events of life. Be it a marriage, buying a car, or a dream vacation, or buying a house, planning for kids education, daughter’s marriage all can be planned and executed in a desired manner with a well laid out financial plan.

Life often throws unexpected surprises like a divorce (which no one even dreams of when one marries) or a sudden lay off (which might mean a new job hunting and supporting the family or self for the entire jobless period). Tackling all these require prudent financial planning.

Another major expenditure, which is often ignored by parents, is the cost of educating their kids. The cost of education is increasing by each passing year and the desire to be in the forefront demands a good education. Can you imagine what a good schooling, good college, coupled with a foreign degree will cost? We are talking in Lakhs of Rupees here. If you don’t start saving for your kid’s education at early stages, chances are good that you’ll feel the cash crunch when the time comes.

Lifestyle changes as one grows in his or her life. The two bedroom house that you have now might be insufficient five years from now when you have two kids. Similarly, a long vacation every year might become inevitable. A bigger and more luxurious car might be required to complement your lifestyle as you shift into a plusher house. All this would require financial inputs at different stages of life, and being prepared beforehand will always help.