Tuesday, October 16, 2018

Financial planning

                       Financial planning  

Financial planning is the process of streamlining the income, expenses, Assets, liabilities of the family to take care of both current and future need for fund. 



Financial planning focus at ensuring that a household has adequate income or resources to meet current and future expenses and needs. The regular income for a household may come from sources such as profession, salary or business. 
The normal activities of a household and the routine expenses are woven around the regular income. However, these are other charges that may also have to be me: out of the available income. 
The current income of the household must also provide for a time when there will be no or low income being generated, such as in the retirement period. 
There may be unexpected expenses which are not budgeted, such as a large medical expense, or there may he needs in the future that require a large sum of money, such as education of children“ or buying a home, all of which require adequate funds to be made available at the sigh: time. A portion of the current income is therefore saved and applied to meet these requirements. 

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