The Importance of Personal Financial Planning – Robert Vohra

The Importance of Personal Financial Planning

Financial planning is crucial because it gives an individual a plan, direction or a map in today’s modern financial world. In other words, financial planning should be specific, attainable, and measurable but also realistic, so that both short term and long term financial aims can be met and satisfied.

Planning your finances

Ways to Personally Plan Your Finances


Planning one’s personal finances are important for the following reasons:

  • Increase in Savings – needless to say, in times of emergencies, having access to liquid assets provides indescribable comfort. Subject to everyone’s particular budget, 20% should be allocated towards savings. This would help both short and long term aims.

  • Increase in Standard of Living – nobody wants to be living at the same conditions as they were 5 or 10 years ago. Savings created, coupled with proper financial planning can contribute towards an increased standard of living in the long term. In terms of economics this means, greater access to a higher standard of goods and services compared to before.

  • Cash – if one is able to secure more disposable cash in hand by eliminating wasteful expenditure and proper budgeting, the excess cash could then be used for immediate on the spot requirements. Alternatively, excess cash can be saved or invested for long term financial goals.

  • Increase in Capital – as noted above, with more cash, an individual can diversify his or her portfolio in terms of simple investments or savings. This increases one’s overall net worth making it easier to access loans and large sums from financial institutions.

  • Increase in Investments – whilst an increase in investments does not necessarily equate to greater financial stability, the key point is that low risk investment or appropriately conducted investments can yield financial benefits. This is best done with excess cash so that in the event of the investment failing, one would not suffer any loss.

  • Family Comfort – linked to standard of living; with proper financial planning an individual can safe guard his or her family. For example, proper insurance policies can provide immense relief, comfort and support in times of need.

  • Comfortable Retirement – this long term goal can only be achieved if there are early and key instruments in place. For example a long term annuity or retirement fund with an insurance company to be accessed at a set maturity date. Having this mandatory contribution plan in place ensures adequate funds for an individual’s retirement.

It is a great idea at some point early in one’s career to seek tailored advice on financial planning from a financial specialist like Robert Vohra. This would ensure the individual knows exactly how to create and manage his or her budget.

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