Whether you 're a teenager intrigued by investing, an employee at a large multinational corporation aiming to secure finds for retirement or any other plans such as vacations, or some entering retirement and seeking to save for your golden years, a well-structured financial plan is essential to turn your dreams into reality. It serves as the foundation for executing your aspiration with precision and purpose 


Initial steps to commence the planning process 

Before starting to make a plan you need to ask yourself 2 things
i) Where and when you want to stand in the future
ii)what is your current financial situation

-By just knowing answer to these questions you have completed the 1st step of making your financial plan 

Now divide the rest of your journey in 3 Phases

Phase-1  This phase is dedicated to saving the maximum amount of your money and ensuring to safeguard it. 

Phase-2  In the phase 2 you will be taking steps to maximize the return on your savings by investing it according to your needs 

Phase-3 This is the final phase in which you will be managing your money 

- Each phase includes a list of steps that you will need to go through once to move onto the next phase.

Phase -1

1.Becoming cash positive-  No matter how much you earn, if your expenses are more than your income then you will never be able to invest in anything. If you are already cash positive {income >> expenses} then focus on lowering your expenses or find a way to get side income, doing so will enable you to invest more money and get better returns with low risks 

2.Eliminating risk-  You need to protect your savings from being spend on hospitals or health care. To do so you need to get a health insurance. It is also recommended to get a life insurance as well if you are the only earning member in your family. This will ensure financial safety of your family in case of any mishappening.

3.Creating an Emergency fund-  As the name suggests, this will come in handy in case of emergency. It would be really helpful for you if a large amount of money was needed in a short notice.


- It's recommended to have savings that can cover your expense for 6-12 months. This provides a safety net, allowing you to manage your loan payments and meet your financial needs even if you face a temporary lack of income


Phase- 2 

1.Starting your Investment-  Once you have completed all the steps of phase 1 you can start investing. Always research before investing and only invest where you have a basic understanding of how and where your money is going. 
- Some of the investment options are - Gold, Stocks, Debt, Real Estate.

Also before investing , take inflation rate in account. The interest you are getting on the invested money should be greater than the inflation rate otherwise you will be losing money.

2.Investing with specific goals and ambitions-  As the topic suggests you should have a clear vision in your mind about why you are investing. If you have a proper vision you will be more clear and consistent to investing otherwise you will lose the motivation and will be back to square 1 where you started from. 

-Be sure to create a retirement fund as there is no guarantee that you will be having a regular source of income in future 

Phase-3 

Completing the initial two phases marks a significant milestones in securing your future. CONGRATULATIONS! You're now nearing the final stages of achieving financial stability

In this phase you will need to manage your money according to your future plans 
        - For instance if you are deciding to get married and have kids then make sure you have enough money to sustain your family in future.
Start creating Fixed deposits (FDs) / Recurring deposits (RDs) for the higher education of your kids.
Moreover, if you find yourself uncertain about the reliability or consistency of your income stream then make sure to properly plan budget of all major events like marriage, anniversary, higher educations of your son/daughter, son's/daughter's marriage etc.


Now that you have successfully implemented all the possible safety measures and made prudent investment with consistency, it's time to celebrate your achievements. Consider treating yourself to a vacation, creating lasting memories with your loved ones

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