In today's uncertain economy, financial planning has become increasingly important. With an overwhelming number of options for saving and investing, managing your finances can be difficult. Creating a financial plan helps you see the big picture and set long and short-term life goals, a crucial step in mapping out your financial future. When you have a strategy and a financial plan, it's easier to make financial decisions and stay on track to meet your goals. Working with a CFPCM professional can secure your financial well being and give you peace of mind and help you reach financial planning success.Some people decide to do their own financial planning, but you may want to seek help from a Certified Financial Planner CM professional if you: Want to better manage your finances, but aren't sure where to start. Don't have time to do your own financial planning. Want a professional opinion about the plan you've developed. Don't have sufficient expertise in certain areas such as investments, insurance, taxes or retirement planning. Have an immediate need or unexpected life event.Objectives Of Financial PlanningEUR Identifying the requirement for money for different purposes and prioritising them.EUR Converting these requirements into specific needs, in terms of money, and the time when it is required. EUR Taking stock of the investors' current financial position to ascertain their net worth and net income / expenses.EUR Planning savings and investments in a manner that would enable the investors to achieve their pre-determined goals.EUR Optimising returns through adequate diversification in sync with the investors' risk - return frame work.

SoEUR¦What is Financial Planning?

It is a step by step process to ensure that you plan and invest in a way so that you are constantly in sight of your goals and the effort that is required to achieve them.

Destination: Setting Goals
Financial planning starts with setting goals. After all, you need to know where you want to go before you can decide how to get there. Your goals can be short-term EUR" for example, paying a credit card debt in six months; medium-term EUR" such as saving for a down payment on a house in two years; or long-term EUR" such as sending your kids to college in 15 years or your retirement. Write your goals on paper, including rupee terms and dates. Keep the list in sight so you can refer to it for motivation as you keep working toward your goals.

Starting Point: Where Are You Now?
Next, get a realistic picture of where you are financially. List everything you owe (liabilities) and the value of everything you own (assets). Also, track your monthly income and expenses in a notebook or on a budget form. Even if itEUR(TM)s not a pretty picture now, thatEUR(TM)s OK. YouEUR(TM)ve faced your financial situation, and financial planning will help you improve the picture.

Avoiding Potholes: Insurance, Debt, Job Loss, Taxes and Estate Planning
Financial potholes will inevitably come your way EUR" stock market downturns, recessions, losing a job, wrecking the car, paying for an illness. You may not be able to avoid these potholes, but you can minimize their financial impact. Here are a few suggestions:

EUR Have adequate insurance. Insurance prevents financial catastrophes, so donEUR(TM)t put off getting it. Insure what you cannot comfortably afford to replace. For most people, that means having the following insurance: auto, renters or homeowners, liability, health, disability and life insurance (if someone depends on you financially).Take advantage of insurance offered to you at your job and supplements it with insurance you buy on your own. Shop for the best price, but make sure you buy from a reputable, financially sound insurance company.

EUR Control debt. Having a lot of debt puts you at financial risk. If youEUR(TM)re spending more than you earn, start using a budget to plug spending leaks, and make paying off your credit cards a top priority.

EUR Job loss. You canEUR(TM)t control the economy or a company layoff, but
you can control how much time you invest in keeping your skills sharp and in meeting people who may help you find a job in the future.

EUR Taxes. Computer software can help you find deductions on your tax return. However, if your financial situation is complex, you may benefit from working with a tax or financial professional who can suggest tax strategies and make sure you are getting all of the credits and deductions due to you.

EUR Estate planning. Every adult should have these four basic documents: will, general durable power of attorney, medical power of attorney and a living will (also called a medical directive). A financial planner can guide you and refer you to an estate planning attorney to draft these documents.

There are many benefits of financial planning. If any of the above questions apply to you, it may be time to call a Certified Financial PlannerCM professional to help you reach your financial goals and achieve financial success.