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Why do you need an expert for financial planning?

Updated: Jul 27, 2023



Financial planning was an often-overlooked topic in the past. But, in recent years, it is slowly gaining interest among the general public. The reason for this increased interest can be increased awareness, economic uncertainties, rising costs, etc. Why is financial planning so important?

1. Emergencies – Imagine the COVID period, there was a lot of economic uncertainty in the world. Everyone panicked during that time and many of us would have made financial mistakes due to lack of proper planning and advice. Another is a personal emergency like the untimely hospitalization of a close relative or a job loss. A solid financial plan will help us to overcome such uncertainties.


2. Achieving life goals – We work hard to give ourselves and our families the life we deserve. A well-chalked-out financial plan is essential to achieve basic life goals like buying a home or aspirational goals like owning a luxury villa. A financial plan helps to achieve such goals by properly allocating your resources.


3. Stress-free life – Imagine spending every second worrying about the next pay check, increasing medical expenses, education expenses, rising costs or another economic crisis. A financial plan accommodates such uncertainties and makes your life easy.



People have certain misconceptions about financial planning:

  • It is for the rich

  • I do not earn enough money to planning

  • I am too young

  • I do not want it since my employer takes care of it

  • Planning means saving money and investing

  • It is a one-time activity

We will be busting these misconceptions during this article. Now, let us understand how hiring an expert can make your life a lot easier.


1.Financial expertise and knowledge – A financial planner plays a role in overseeing your finances, much like a doctor does for your health or a lawyer for legal guidance. If someone told you managing finance is easy, they are fooling you. Think about it. There are so many things involved – income, savings, taxes, investments, insurance, debt, etc. It can be daunting to be on top of so many things while doing your job and having a family. A financial planner is a professional who has the requisite knowledge to guide you with your finances such that managing your finances becomes less overwhelming for you.

2. Setting SMART goals – SMART (Specific, Measurable, Achievable, Realistic and Timebound) goals. The financial goals of every person differ concerning their background, financial status, life stage and overall perspective. A person who has achieved the basic life goals and has enough savings and investments might have aspirational goals (like owning a luxury car) whereas someone who is still young will have to meet the basic life goals (like buying a house). A financial expert can give an unbiased opinion about the achievability of your life goals.

3. Risk Assessment and Building a plan– In life, you need to take risks to get rewards. Higher the risk, the higher the reward. This is true in finance as well. Establishing SMART goals and developing a financial plan depends on how much risk you are willing to take. Risk-taking is an individual characteristic. The ability to take risks also depends on the financial situation of a person. For eg: if you belong to the affluent section, losing a few lakhs in a risky investment may not affect your finances. This decision can be made by an independent person like a financial expert. Once we have goals in place, the next step is to create a comprehensive plan to achieve them. It is important to determine how much money to allocate towards different financial products like debt or equity to effectively work towards our financial goals.


4. Manage & Monitor Portfolio – Financial planning is not a one-time thing. It is an ongoing process. Regular monitoring and periodic reviews are necessary to ensure the achievability of life goals. For a regular individual, on top of his/her regular job, it is daunting to do such periodic assessments. Moreover, there will be times when you need to reallocate your investments due to various reasons. An expert manages your portfolio and incorporates your requirements in the plan as required.

The need for financial planning has never been greater. It is getting tricky for every individual to understand the financial landscape without the help of an expert. If you want guidance regarding personal finance, Reach out to an Ambrela expert.



Have you completed your Financial Planning?

  • Yes

  • No

  • I will do it now !!


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