This article will briefly tell you about the work done by a financial planner. You also can have clear answer for the question "why can't we become a financial planner on our own?" You also can find the requirements to become a successful financial planner. Finally, you will have a confidence on you to become a good financial planner.

In my previous post I have presented you the ways to earn money full time and also in part time. By this time everybody should know the source of income, either full time or part-time. Monthly we will have a sum of money in our bank savings account or salary account. Many will start spending it without a plan and by end of the month they will end-up with debt. This is the time when we need to know about the financial planning. Financial planning is not only required for a company, it is also required for every family. Company will spend some money to plan its finance. But as an individual many of us will not like to spend money for it.

Many will think why can't we plan our future. YES we can do our own planning better than a planner. It required many inputs like annual income, short term goal and long term goal etc. But every inputs is there with in us. It can come out by answering few simple questions. In the market there are many financial planners available. Approaching them is like giving your hard earned money to some other guys to achieve your goal. Is anyone there like in giving your money to someone. Literally you will not give your money to anyone, but going to a planner is like, we cannot think ourselves in critical situations. Some of the planners may change our goals itself. Which is important to us will not be important for others. So it is better to plan by ourselves. Come let us plan our future ourselves.

6 Major questions a planner will ask

Have the answers for the below 6 major questions. If you have right now, then you are ready for planning.

    What is your monthly income? (Including all your income from part time income, rent from some property etc.)
    What assets are with you at present?
    What Liabilities are with you now?
    What are your short term goals? (Like fees for kids education, buying a car or two wheeler etc.)
    What are your long term goals? (Like owning a property or for kids higher education's etc.)

Don't you feel that these simple questions can be answered by us. Once you have a goal then it is very easy to frame the ways to achieve it. The main aim of this blog is to make you aware of all the possible ways to achieve your goal.

What a Financial Planner will do

In common, all the financial planners will collect all the information by asking simple questions like above. They will have some tools which will have an expected GDP growth in coming years as percentage. These percentages will be available on net. They will enter all in numbers in their tools. They will get some data from their tailor made software, from which they will start suggesting. There are 50 percent of the chances, they will frame the ways in their own way. Their ways may suitable for some, who will not find time to think.

I am not telling the financial planner is not required. They are required for only companies, where there will be a macro inputs to calculate for the future. As an individual, mostly we will not go to any such planner and hence I am preparing this blog to make aware of the financial planning. We can do our financial planning according to our wish and time frame. It is so easy for any educated professionals in any field.

Requirements to be a good financial planner

Financial planning is very crucial part to achieve your short and long term goal. It is very important to have the below mentioned points before planning. If you do not have any of the below things, I request you to make it ready before moving to next topic.

    Pen or Pencil
    Papers in a file or a Note book
    Standard Calculator
    Ruler with a pencil (it is not must)

Always I use to do new things in Ancient Way. If anyone feels that, in this modern world who will use pen and paper, then they must a Personal Computer or a Laptop with Microsoft Excel (or equivalent). It is my belief that modern technology makes human not to think at all. While you write anything in a hand written it will go to your subconscious memory also. The knowledge in your subconscious memory will be coming along till the end. So it is better to have a practice of writing with pen and paper is advised.

So, now you all come to know that the materials required for planning is very cheap and readily available with us. As this is a step-by-step process, you cannot get all the details in one stretch. Have patience for the next post to be edited and published very soon.

Whatever the plan you make, it must need a frequent review to keep track of our goal.