Call Us

FOR EXISTING POLICY

Have query on premium, payout or any servicing need?

Call us:

1 860 266 9966

Monday - Saturday | 10 am - 7 pm IST

Call charges apply

Dedicated NRI Helpdesk:

+91 22 6251 9966

Monday - Saturday | 10 am - 7 pm IST

Call charges apply

FOR NEW POLICY

Want to buy a new policy online?

Call us:

+91 22 6984 9300

Give missed call for a call back:

+91 11 6615 8748

Monday - Sunday | 8 am - 11 pm IST


Exclusively for NRIs:

Call us:

Give missed call for a call back:

+91 11 4473 0242

Monday – Sunday | 9 am – 9 pm IST

Language

Need assistance in choosing the right insurance plan? Get a call from our Expert.

Need assistance in choosing the right insurance plan?Get a call from our Expert.

+91 dropdown arrow

Select Plan dropdown arrow
  • Term plans
  • Saving plans
  • Wealth plans
  • Retirement plans
  • I don't know/I need help

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in. T&C apply.

What Are the Factors That Affect Financial Planning in India?

If you have ever thought of creating a financial plan, you may have started by first saving some money and then planning out different investments. However, all of this comes at a much later stage. You can certainly start with some investments, such as buying life insurance plans for your family security. But a long-term financial plan starts with first identifying all your income and expenses before you start putting aside any money.
 

Just because you are creating a financial plan does not mean that your everyday expenses should take a backseat. In fact, a professional financial planner will make you account for every rupee you earn and spend, which is when you can come up with a financial plan.
 

What is Financial Planning?
 

In very simple terms, financial planning is when you can plan your earnings, expenses, savings, and investments regularly, enabling you to follow financial discipline and build a wealth-creation plan.
 

A financial plan can be created for the short term or the long term; however, a long-term financial plan can be quite beneficial if you need to create an emergency fund for the future. This could be for your retirement or for supporting your family’s dreams and goals.
 

Financial planning is a lot like investment planning – it is better when it personalised and customised to your needs. This is because no one else may have the same financial goals and obligations as you do. Hence, they may not invest in the more suitable avenues for supporting your wealth plan.
 

It is also necessary to remember that no matter how well you plan your finances, some events or mistakes can influence your financial planning to at least some extent, if not severely. Therefore, educate yourself on what could impact your financial plans to brace yourself for the outcome.
 

Factors Affecting Financial Planning
 

There are numerous reasons why your financial plan may not work as expected. Here are some of the primary factors that affect not only personal financial planning but also investment planning.
 

  • Taking Loans

    There is nothing wrong with taking a loan when you need it. But taking too many loans on a higher limit, which goes well beyond your means, can lead to several debts. The worst part of these debts is that your family will bear the financial burden in your absence.

  • Spending Habits

    Everyone has to spend money on daily and monthly needs. These can be household expenses, utility bills, commuting to work, paying domestic help, and so on. You must also enjoy spending on occasional entertainment such as an outing, a fancy dinner, a short vacation, and so on.

    But the problem starts when you are unable to track your luxury expenses. Impulse buying and overspending each month can be detrimental to your financial plan.

  • No Backups

    Even if you have planned your savings and investments, setting aside some of your finances for an emergency fund is always advisable. This fund should only be utilised for dire situations that lead to loss of income, such as temporary or permanent disability, unemployment, and so on.

    Without an emergency fund, most people end up sacrificing on their future plans when an emergency strikes, as they have to pull together all their savings and investments to face the crisis.

  • Beneficiaries and Dependents

    When carrying out personal financial planning, consider your family’s future security and all of their needs. If you miss out on planning the finances for 2-3 family members, even by mistake, it is likely that the financial support you leave behind or the life insurance sum assured of your preference will not be enough.

    Plan for the smallest expenses for every family member, such as minor daily purchases, higher studies education fees, your spouse’s retirement plan, and an emergency fund if needed.
     


Not everyone can follow the exact financial plan that they create right from the start. But with small but regular steps, you can get there in a matter of months. This goes for all your savings and investments as well.
 

Life insurance policies are also an important part of your financial plan, which is why you should choose an adequate sum assured when buying your policy. Also, be sure to inform your loved ones about your online policy and educate them on what is to be done when in case of your demise during the policy term and when they need to file a claim with us!
 

Conclusion
 

Financial planning is no rocket science; it takes time, patience, and a disciplined habit of following through with the plan. As it becomes a habit, you will slowly see your finances fall into place, making well-informed financial choices easier since your financial basics are clear.
 

L&C/Advt/2022/Dec/3337

Discover Tailored Financial Planning Solutions to Secure your Future

+91 dropdown arrow
  • +93 Afghanistan

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.


 

Looking to buy a new insurance plan?

Our experts are happy to help you!

+91

Select plan
  • Term plans
  • Saving plans
  • Retirement plans
  • Wealth plans
  • I don't know/I need help

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in

People Like You Also Read

What is a Family Pension? A Complete Guide
Read More
What is Wealth Management: Meaning and Strategies | Tata AIA Blog
Read More
Wealth Insurance: The Complete Guide
Read More
5 Habits You Must Change to Create More Wealth
Read More
Tax Benefits of ELSS Funds: Save Tax & Grow Wealth | Tata AIA Blogs
Read More
Most Common FAQs on ULIP Taxation
Read More
ULIP and SIP - What Do They Mean?
Read More
What is the Difference Between Mutual Funds and ULIPs?
Read More
All about ULIP and PPF?
Read More

People Like You Also Read

What is a Family Pension? A Complete Guide
Read More
What is Wealth Management: Meaning and Strategies | Tata AIA Blog
Read More
Wealth Insurance: The Complete Guide
Read More
5 Habits You Must Change to Create More Wealth
Read More
Tax Benefits of ELSS Funds: Save Tax & Grow Wealth | Tata AIA Blogs
Read More
Most Common FAQs on ULIP Taxation
Read More
ULIP and SIP - What Do They Mean?
Read More
What is the Difference Between Mutual Funds and ULIPs?
Read More
All about ULIP and PPF?
Read More
Website Logo Image Icon

Tata AIA Life Insurance

A joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA),  Tata AIA Life Insurance  is one of the leading life insurance providers in India. We post everything you need to know about life insurance, tax savings and a variety of lateral topics such as savings and investments in this space. You can access and read a host of different blogs, articles and pages at the Tata AIA Life Insurance Knowledge Center or get in touch with us with any queries or questions!

View all posts by Tata AIA Life Insurance

Frequently Asked Questions

Do I need a financial advisor to create a financial plan?

No, you do not necessarily need a financial advisor when creating a personal financial plan. However, if you intend to make some investments, especially those with high risk, you should consult an advisor who can guide you on the same.

Will a financial plan help me achieve financial independence faster?

While a financial plan does not guarantee when you will achieve financial independence, it will streamline and align your earnings, expenses, savings, and investments such that you will be able to find more opportunities to create wealth over the long term. This may lead to a certain degree of financial independence down the line.

Disclaimer

  • Insurance cover is available under the product.
  •  The products are underwritten by Tata AIA Life Insurance Company Ltd.
  • The plans are not guaranteed issuance plans, and they will be subject to Company’s underwriting and acceptance.
  • For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.
  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and does not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.
  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.