Investment is not core but just part of financial life. Know why!

Many a time, people get confused between ‘means’ and ‘end’. They take means as an end in itself. The same happens with your financial life. People take investment as the ultimate core of their financial life, when in reality; it’s just a part of your financial life. Undoubtedly, there are other parts of your financial life too. In this article, we have discussed some important aspects of your financial life.  

Cash Flow Planning: This involves analysing from where you earn and where you spend. There might be different sources of earning, which you may spend in other discretionary and necessary items but you need to see that you do not have a negative cash flow.  

Tax Planning: It is not only about filing your annual returns but it is more about planning your investments and expenditure in a way that it reduces your tax liability and you have enough cash to invest.

Retirement Planning: Some people have a perception of retirement planning in terms of financial freedom or independence from an employer or far from worry and tension. They are not wrong in their perception but retirement planning is far more than just these. It’s all about the stream of a steady income in your second innings.

Insurance: Risk management is an important aspect of your financial life and insurance helps you in that. The insurance covers all areas, including life, health, cars, other property, potential liabilities and long-term healthcare.

Special Issues: In addition to the above, everything else falls into this catchall category. This includes providing for education, elderly parents, disadvantaged as well as gifted kids, etc.