5 Reasons Why Businesses Need Financial Planning

What Do You Understand by Financial Planning?

What Are the Reasons for Creating a Financial Plan?

Why Is Financial Planning Important for the Success of an Organization?

FAQs about Financial Planning

How do financial planners determine cash flow while setting up a budget?

up-arrow
These professionals first estimate your monthly income. If you are a non-salaried person, they calculate your average monthly income by dividing your previous year’s revenue by 12. Then, they consider all categories of expenses, such as fixed monthly expenses like credit card payments, utility bills, gym membership, etc., annual costs, and all sorts of miscellaneous expenses. Finally, all these are adjusted to assess the cash inflow and outflow.

What are the objectives of a financial plan in your personal life?

up-arrow
The primary objective of a successful financial plan is to determine whether you have sufficient funds available to fulfil all your chalked-out goals. It helps you to save money for your retirement, systematically accomplish estate allocation, etc.

What are the main functions of financial planning?

up-arrow
Financial planning helps a person make decisions associated with the investment, liquidity management, savings and expenses.

Disclaimer

up-arrow

  • This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
  • All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
  • Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.

Latest News

Currently there are no news to show.

Read More

Renew & Download Policy Document, Check Challan, Credit Score, PUC & more

Anytime, Anywhere. Only on Digit App!

google-play-icon

Rated App

app-store-icon

Rated App