A financial plan can help you create goals you can work towards and achieve within a specific time frame. A goal gives you purpose and direction in life. A more explicit goal makes it easier for you to focus on accomplishing it. And when your goal is financial success, establishing clarity around money matters is probably the most vital thing you can do. Unless you understand your basic financial needs, you will be unable to create a financial plan. Once you know what you need to live a financially stable and satisfying life, your brain will start looking for ways and means to reach this goal.
 

What are the Benefits of Personal Financial Planning?
 

The advantages of personal financial planning are countless. The services are not just financial but also emotional, health-related, and social. So, it would not be incorrect to say that the right financial plan will positively affect almost every aspect of your life.

 

Apart from being a source of commitment and motivation, your financial plan acts as a guide for decision-making. It helps you set standards for yourself and improve your financial situation. Right from the times of Mahatma Gandhi, we have learned multiple financial lessons over the years.
 

Why is Life Insurance Important for Financial Planning?
 

Like any other financial product, life insurance also plays an instrumental role in helping you plan your present and future financial commitments. Life insurance provides a death benefit to your (the insured’s) beneficiaries in the event of your death. It can play a critical role in financial planning by providing financial protection for loved ones in the event of the policyholder's death.
 

It can also be used as a savings and investment vehicle, with some policies accumulating cash value over time. For instance, if you have a savings insurance plan, you can determine your short-term and long-term goals that need to be met at certain points in time. If the policy pays out some benefits during the policy term and some others on policy maturity, you can use this savings plan as an important tool to plan all your goals.  And during the policy term, you can ensure that your family’s financial future is secure with a life cover offered under the plan.
 

Additionally, life insurance can be used to help protect assets and provide estate planning benefits. Overall, the goal of life insurance is to provide financial security for the policyholder's loved ones in the event of the policyholder's death.

Financial Lessons from Mahatma Gandhi
 

Do you often wonder about the key to success in personal finance? Do you look around for inspiration? If these questions have been on your mind, you need not look far. The father of the nation, Mahatma Gandhi, has been an inspiration not just for Indians but for people from all over the world. His teachings, ideals, and philosophies continue to inspire us and touch our lives even today. The Gandhian messages of truth and self-reliance remain helpful. However, there are also some financial lessons and mantras we can learn from him.

So, if you have been asking, how can I be financially smart? Read these financial management tips and try to implement them in your life.

• Enough for man’s need, not his greed

  If you come to think of it, there are many lessons for modern India from Mahatma Gandhi. “The world has enough for every man’s need, but not everyone’s greed” proves that impulsive decisions to make risky investments can often lead to a depletion of funds. Schemes that offer quick and significant returns are often dubious and rely only on greed. There are no shortcuts in life, so avoid investing in lesser-known firms.
   

• Simple living, high thinking

  Anecdotes from the Mahatma’s life tell us that he was a man of discipline. Maintaining discipline in our day-to-day life can do wonders. Making a budget is essential and sticking to it is all the more crucial.

  
  

• Small steps that you can take:-Long-term investment may require more patience and discipline than short-term gains. But a well-planned investment will always bear fruits. Mahatma Gandhi’s virtues of patience and persistence must be developed. With time, even his most minor teachings will make a huge impact.

  
  Similarly, when you start with small steps and investments, even as little as ₹ 1000 or ₹ 500 a month, there is always a scope for making it big in the future.




• Keeping faith: The adversities that Gandhi faced were immense. But in his long struggle, despite the failures and rejections, he did not give up. With his strong will and faith, he sailed through difficult times. In life, our investment strategy also requires perseverance and dedication. After all, patience is a crucial element in financial planning. Keep your expectations realistic, and do not expect more returns overnight. Monitoring your returns from time to time is essential, but you must give them time to grow. Wait for the right moment, and most long-term investments will fetch you good returns.

The Mahatma’s principles are time-tested and practical. With a stable goal, following them would not be difficult. However, many still wish there was a magic mantra to manage their finances. While this is not possible, a more realistic approach is to start improving your monetary situation right away. By sticking to these five basic policies, you will gradually see your money problems diminishing.

L&C/Advt/2023/Jan/0276