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Now, when it comes to financial planning one often take it as just another investment. But investment is just one part of financial planning. And financial planning involves looking at your entire financial situation and laying out a plan to take you in the direction you want to go.

The most common and important goals in which financial planning is necessary are:

Child Education: In the present scenario unemployment is increasing all over the world. Gone are the days when a man who is not educated is able to make his livelihood. Today even for making a moderate living one needs to acquire special skills. These skills are acquired through education. However, education today has become a very costly affair- way beyond the means of a common man. Like, if a child is studying in X standard, he would be needing a substantial amount of money at regular intervals. Therefore in order to avoid last-moment complications, one needs to plan for this as early as possible.

Marriage: In India marriages & festivals are celebrated with great enthusiasm. Marriage besides being an expensive event needs to be a fun and enjoyable affair. People spend a lot of money on marriage without thinking about finance and then land in trouble for repaying if they had taken debt. But if finance in marriage is planned, then all these kinds of trouble are avoidable.

Retirement: Everyone has to retire at some point from their working lives. However, people hate to talk about retirement, thinking that their regular income will stop. But, one must always remember that retirement is the beginning of new life. People have lots of things on their minds that what they would do after retiring and how would they finance their post-retirement dreams and aspirations. Apart from this, one also wants to maintain the current standard of living after retirement. When you retire from your job, you stop getting your paychecks. You have to rely on your savings which you had made throughout your life, which is not adequate enough as inflation leaves its impact on it. We all know what inflation is and how does it affect your expenses, standard of living, and most importantly your plans for your retirement. To cope with this part of life we need to plan systematically to enjoy our retired life to the fullest. It is always good to start planning your finance as early as possible. Planning at the early years of your career also helps compound the corpus many times by the time you retire. Enjoying this phase comfortably requires deep and thorough planning as we cannot solely depend on schemes like Social Security Benefits, Personal savings, and Defined Benefit Pension.

Medical emergencies: As age increases health problem also increases. And so do increase the medical expenditure which makes a huge dent in your income post-retirement. A little negligence here would lead you to sell your assets in order to meet such expenses. In order to avoid such type of circumstance, we need to create an emergency fund that would take care of unforeseen events such as medical emergencies, etc.

Financial Planning is an ongoing process. It is always better to start as early as possible so that you can gain from the power of compounding as well as aim for a higher return.