Hi friends, before I say anything about the topic which I want to discuss today, let me ask you a few questions;

  1. In education, we all need a master or mentors, teachers. Do we have the same masters for all types of education?

  2. In Life, for all our requirements like food, water, shelter, clothing, mobile, etc. do we go to the same vendor? Or do we have different vendors for different things?

  3. In different types of sickness, do we go to the same doctors for different types of treatment?

If the answer is obviously "NO" for all questions above, then for a very crucial, important financial matters, whom do we approach?

And unfortunately, the answer is friends, relatives, under influences of others, none of them are financial experts, and very few of them really helped people in achieving financial goals.

When for different types of requirements in our life, we have different vendors, even in medical requirements we do not approach cardiologist for our neurological problems and likewise, then for a thing which will define your financial success which most of the times give you a sense of fulfillment why don’t we approach an expert in finance field ? They are Certified Financial Planners only.

With due respect to Chartered Accountants, Mutual Fund Advisors, Life Insurance Agents, Share Brokers, none of them can be called a Financial Planner. They might be experts in their respective fields, but Financial Planning is altogether a different subject.  

Then what does financial planning means to all of us?

It greatly involves understanding a person first who is looking for financial success in life. There cannot be a uniform financial plan applicable to all at the same time.

Then understanding his/her future financial needs various resources available for the same.

Then understanding the risks and making provision for it first lays a strong foundation for any financial plan.

Then helping oneself to identify surplus which will help to optimize the resources. Helping oneself to understand his/her expenses and identifying unimportant expenses is a crucial task.

Then allocation of the surplus so identified in Risk as well as safe assets depending upon the risk profile of each person.

This prepares a broad outline. However, to achieve a financial success a periodical review and monitoring would actually make the plan realistic one.

Many times, there come occasions in life where people tend to invest their money for fast results and end up losing their hard-earned money. Not only that, people tend to change the entire financial plan for emotional decisions, paying a great risk to their financial goals. A Financial Mentor can be a person or a professional who can save you from any hazardous financial move in your life.  

Making place is a person’s mind to influence their decisions which would divert their attention from the main plan and face a financial failure like a mentor by helping them understand the importance of sticking to a financial plan requires great involvement from both the side.

Will you agree with me now that one needs a financial mentor in life?

Milind Bane

Certified Financial Planner, CFP

Friend Financial Services.

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Blog Views : 1407 09-11-2018