Areas covered under Financial Planning

Once financial goals have been set, certain aspects that should be considered are :

1. Expenditure Budgeting

Budgets are detailed projections of income and expenses over a particular period of time. It necessitates a prediction of one's needs at various points. To make sure a proper expenditure budgeting, ways of increasing income and reducing unnecessary expenses should be identified.

2. Income

Income would refer to any amount of money earned.

3. Tax Planning

Taxes exert a huge impact on one's personal finances. It reduces cash flow, influences investment decisions, affects the way in which borrowing is done, the type of life insurance bought and the method of saving for retirement. An effective tax planning would help you to keep the money earned. By taking maximum advantage of tax saving opportunities and by taking up clearly defined tax plans, will greatly increase the speed with which financial goals are achieved.

4. Saving

On the basis of income earned the amount for budgeting and taxation can be determined and allocated accordingly; the amount left over from these would be the saving. There are various savings and investment tools that can make use of in order to save, create and invest money so as to ultimately achieve financial independence.