By planning your finances, you plan for a carefree retirement. As mentioned above, inflation is a major concern and hence mere savings are not sufficient. Financial planning helps save for retirement and ensure that you remain independent even when you do not earn a salaried income. A structured plan takes into account how much is required to sustain your daily expenses, your lifestyle, possible Medical expenses, life expectancy, etc and invest accordingly.
To sum it up, Financial planning is about taking into consideration all elements of a person’s financial life and coming up with a plan to help you as an individual meet your responsibilities and achieve your goals. The earlier you start, the better your financial standing. Financial planning requires a basic knowledge of economic trends and financial products in the market and it can be intimidating to do it on your own. Hence it is advisable to work with a financial advisor and plan your future.