Financial Planning

We are happy to share details of a financial plan

Our team continuously strives in making the financial plan document as relevant and realistic as possible. It took us many clients to realize that the financial plan is not just for you but for us as well. We want to know as much as we can about you so we can guide you in making intelligent decisions. We want to understand what motivates you to spend, save and work so that we can help you achieve your life goals, whatever they are. The financial plan has the following sections.

Each section is designed to give you a better understanding of your financial circumstances, and what’s projected for the future. Goal summary Financial statement snapshot Advice on your current portfolio Insurance needs analysis Goal wise analysis Action Plan. Periodic review will be necessary to keep your report up to date and pertinent to your life. If, after a thorough review of the plan, you feel you’d like to make different assumptions, we’ll be happy to make adjustments based on whatever assumptions you may wish to adopt.

While the document is aided by a proprietary financial planning software, a lot of human intervention has gone into making this financial plan a worthwhile proposition. Be it an insurance policy or a mutual fund portfolio, our team scrutinizes each and every aspect of your financial life to give you effective and practical advice.

Mastering Cashflow

Mastering cash flow is essential because it is the foundation for your financial planning. If you feel disconnected from your cash flow, don’t worry. You are not alone. Most Millennials feel the same way! It takes a lot of hard work to master cash flow, but here are a few pointers:

Create a budget based on what you have tracked for the past few months. Try to stay within that budget.  Having a cash flow plan can allow for discretionary spending while helping you manage expenses and potentially find savings for your goals.

Is your income covering all your expenses? Or are you racking up credit card debt or borrowing from retirement savings (if there is any)? This will let you know if you have enough income to pay for all your expenses or if you need to dig into cash flow and look for sources of savings.

Start by tracking your spending for 3-6 months. Figure out what you are spending money on.  You can use an app or website or Excel. Any method works as long as you keep track of it.

If you are struggling to stick within your budget, consider using different accounts for different expenses. Meaning rent or mortgage payments, utilities, etc. all come from one bucket and things like clothing or dining outcome from a different one.  This may help you see what you do or don’t have available to spend on the discretionary things.

It takes time to master cash flow.  And if you are an entrepreneurial Millennial and have unpredictable income, this will take even more work.  Don’t expect to hit a rhythm with your budget the first or second month.  Have discipline because mastering cash flow is worth it.  Once you have it mastered, you don’t have to worry about frivolous purchases as long as it stays within your budget.  And in the larger picture of financial planning, it is impossible to know how much money you will need to save for your financial goals (home, student debt, retirement, etc.) without knowing what you spend now.  Put the time in to become a master of cash flow!

Cash Flow (Step 1- Prepare cash flow statement)

Many people link cash flow with businesses but it is also fundamentally important in personal finance. Whether it’s a person or a corporation, having a positive cash flow (or liquidity) is the key to survival. Simply put cash flow is a snapshot of your incomes and expenses. Below is a representation of your projected yearly cash flow for the next 12 months.

Cash Flow Statement: Projected Cash
Flows Yearly Amt:
Inflows Yearly Income
Salary 26,40,000
Total 26,40,000 A – B – C = Surplus (Deficit)
Outflows Yearly Expense :
Food & Groceries 1,44,000
Clothing 18,000
Medical expenses 18,000
Shopping 18,000
Basic misc. 60,000
Mobile 24,000
Electricity 36,000
DTH 9,600
Newspaper & Magazines 9,600
Bills & Utilities misc. 18,000
Gas 12,000
Driver’s salary 96,000
Transport misc 24,000
Vehicle Maintenance 18,000
Sample School/College/University fees 2,64,000
Book & Supplies 6,000
Society maintenance 24,000
Maid/Domestic Helper 18,000
Property Tax 9,600
Housing misc. 12,000
Movies 12,000
Restaurants 24,000
Entertainment misc. 12,000
Gifts & Donations 12,000
Personal Care 12,000
Health & Fitness 12,000
Doctor 12,000
Dentist 12,000
Repairs & Maintenance 18,000
Petrol/Diesel 1,20,000
Transport misc. 24,000
Parental care 1,20,000
Total 12,28,800
Other commitments Yearly Amount
Loan EMI 4,48,932
Life Insurance Premiums 5,36,367
General Insurance Premiums 20,818
Other commitments Yearly Amount
Regular Gold investments 1,00,000
Total 11,06,117

Financial planning is the process of meeting your life goals through the proper management of your finances. One’s goals can include saving for a major purchase, education planning or planning for retirement. The financial planning process consists of several steps that help you take a “snapshot” of where you are today and what you need to do financially to accomplish your targets. The process involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan for how you can meet your objectives given your current situation and future plans.

A Professional Financial Advisor is a practicing professional who helps people deal with various personal financial issues through proper planning, which includes: cash flow management, contingency planning, education planning, retirement planning, investment planning, risk management, and insurance planning, tax planning, estate planning, and succession planning.

The work engaged in by this professional is commonly known as personal financial planning. In carrying out the planning function, he is guided by the financial planning process to create a financial plan; a detailed strategy tailored to a client’s specific situation, for meeting a client’s specific goals. The key defining aspect of what the financial planner does is that he considers all questions, information and advice as it impacts and is impacted by the entire financial and life situation of the client.


People enlist the help of a PFA (Professional Financial Advisor) because of the complexity of performing the following:

  • Finding direction and meaning in one’s financial decisions
  • Understanding how each financial decision affects other areas of finance
  • Adapting to life changes to feel more financially secure.

The best results of working with a Financial Advisor, from an individual client or family’s perspective are:

  • To create the greatest probability that all financial goals (anything requiring both money and planning to achieve) are accomplished by the target date.
  • To have a frequently-updated sensible plan that is proactive enough to accommodate any major unexpected financial event that could negatively affect the plan.
  • To make intelligent financial choices along the way (whether to “buy or lease” whether to “refinance or pay-off” etc.).


Personal financial planning is broadly defined as “a process of determining an individual’s financial goals, purposes in life and life’s priorities, and after considering his resources, risk profile and current lifestyle, to detail a balanced and realistic plan to meet those goals.” The individual’s goals are used as guideposts to map a course of action on ‘what needs to be done’ to reach those goals.

Alongside the data gathering exercise, the purpose of each goal is determined to ensure that the goal is meaningful in the context of the individual’s situation. Through a process of careful analysis, these goals are subjected to a reality check by considering the individual’s current and future resources available to achieve them. In the process, the constraints and obstacles to these goals are noted. The information will be used later to determine if there are sufficient resources available to get to these goals, and what other things need to be considered in the process. If the resources are insufficient or absent to meet any of the goals, the particular goal will be adjusted to a more realistic level or will be replaced with a new goal.

Planning often requires consideration of self-constraints in postponing some enjoyment today for the sake of the future. To be effective, the plan should consider the individual’s current lifestyle so that the ‘pain’ in postponing current pleasures is bearable over the term of the plan. In times where current small sacrifices are involved, the plan should help ensure that the pursuit of the goal will continue. A plan should consider the importance of each goal and should prioritize each goal.

Financial Planning should cover all areas of the client’s financial needs and should result in the achievement of each of the client’s goals. The scope of planning would usually include the following:

  • Risk Management and Insurance Planning. Managing cash flow risks through sound risk management and insurance techniques.
  • Investment and Planning Issues. Planning, creating and managing capital accumulation to generate future capital and cash flows for reinvestment and spending.
  • Retirement Planning. Planning to ensure financial independence at retirement.
  • Tax Planning. Planning for the reduction of tax liabilities and the freeing-up of cash flows for other purposes.
  • Estate Planning. Planning for the creation, accumulation, conservation and distribution of assets.
  • Cash Flow and Debt/Liability Management. Maintaining and enhancing personal cash flows through debt and lifestyle management.
  • Relationship Management. To understand and service the core needs of the client.
  • Education Planning and marriage planning for kids and goal planning for other family members. Creating and planning for funds so that right kind of amount is available at right point of time.
  • Other identified goals. Planning for any other identified goals or aspirations that you might want to achieve within the means and resources like owning a car, holiday planning, 2nd home, new business start-up, etc.

The Process

  • Setting GoalsSetting goals with the client. This step is meant to establish the Client-Planner relationship and identify where the client wants to go in terms of his finances and life.
  • Relevant InformationGathering relevant information on the client. This would include the qualitative and quantitative aspects of the client's financial and relevant non-financial situation.
  • Analyzing the InformationThe information gathered is analyzed so that the client's situation is properly understood. This includes determining whether there are sufficient resources to reach the client's goals and what those resources are.
  • Constructing a Financial PlanBased on the understanding of what the client wants in the future and his current financial status, a roadmap to the client goals is drawn to facilitate the achievements of those goals. The complete plan is presented and discussed. Alterations are made, if required, to the satisfaction of the client.
  • Implementing The StrategiesImplementing the strategies in the plan. Guided by the financial plan, the strategies outlined in the plan are implemented using the resources allocated for the purpose.
  • Monitoring, Reviewing and Re-evaluatingMonitoring, reviewing and re-evaluating the plan. Reviews and re-evaluation are the essences of the entire financial planning process. The implementation process is closely monitored to ensure it stays in alignment to the client's goals. Markets, investments, government policies, client's personal and financial circumstances, and other factors will change over time. Reviewing goals, situations, strategy, and investments are vital to ensure that the client remains on track to meet short-term to long-term objectives. If there is any significant change to the client's situation, the strategies and goals in the financial plan are revised accordingly. We recommend a review to each client at least on an annual basis.