Why do you need well-executed financial planning if you love living luxuriously?
A team of academics is said to have conducted a goal-setting study on Harvard Business School graduates in the 1980s to ascertain the influence of planned and documented objectives on future outcomes. The apparent surprise is that only 3% of the class, who had specific goals and a strategy in place, were making 10 times as much as the others.
Although this analogy is sometimes misused, it does convey a strong message: Having well-defined objectives and a well-thought-out plan will probably help you attain a success rate of 100 percent.
You ask me what this has to do with this article here.
Financial planning is vital for achieving any objective in life. You won’t have to give up your lifestyle if you have a solid financial strategy. You can accomplish your objectives and maintain a respectable standard of comfort.
Also Read: Financial planning for children’s needs: Should you invest in a child plan or mutual funds?
When you have a good financial plan and take action accordingly:
* Your success rate becomes tremendously high.
* You can achieve more than what you wished for with the same amount of money because your money gets allocated to the right set of treatments.
* Right Application of Products – For instance, if you buy products in an ad-hoc manner, you might think of buying an equity fund to fund a short-term goal, which wouldn’t work. But if you work according to your plans, it will help you segregate your money and target the right set of products. Let’s say you have a long-term goal of buying equity funds and you target your short-term goal of investing in fixed deposits or fixed income products. Therefore, a well-executed plan helps you to make efficient decisions about your money and invest it in the right
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