Arti Arora, CFP | Head Financial Planner

Good practices should never come to an end and should ideally become a part of our daily lives. Therefore, there is so much emphasis on health and fitness, reading as well as ongoing education to stay afloat in these highly competitive times.

Financial Planning fits this bill quite well and if done in the right manner can pave way for each of the above. It is no magic wand but it surely is magical as it just doesn’t give you a reality check about your finances; it opens up ways, solutions and where need be, even alternatives as next best scenarios for you in terms of achieving your financial goals and living your life as you desire.

So, if one has been through the financial planning process and have theirfinancial plans in place, the job is half doneand as they say, ‘well begun is half done’!

It is pertinent and dulyadvised that you review this plan periodically with your financial planner / advisor depending on changes in your financial landscape. As a thumb rule, annual plan reviews are suggested but the same can be done sooner if your situation so warrants.

The one time planning exercise does have its merits as it puts one’s financial life in perspective and gives a clear roadmap about the future; still, it is only with periodic plan review that an individual can achieve their financial goals efficiently and can optimize on their resources.

Without the review, the plan can become outdated as the changes in your personal situation as well as the macro changes at the economy level or those on the global front, may not render the plan completely accurate or suitable.

Keeping this in mind, one may find their cash flow position changed or savings / investment plan for their goals go off track requiring a change in the overall strategy, etc., which further necessitates the need for plan review.

Thumb rules are great but very generic at the same time and financial planning and advisory space owing to its complexities and dynamicity is neither a case of ‘One Size Fits All’ nor ‘once done and done with’.

As a closing line, it pays to pay attention to your finances.They are every penny worth it and when this becomes a way of life for you, life becomes way easier.