Financial Planning

According to you what should be the basic process of financial planning for an Individual

according to me there should be 6 steps of financial planning.
Step 1: Establish the Goal:

The purpose of establishing the goal or relationship is to form the foundation or purpose.Too many people save and invest money with no specific goal in mind,which makes them confused and an irrational investor. The goals would help us to reach our destination.

Step 2: Gather the Relevant Data:
in this step the information required to make recommendations for the appropriate strategies and financial products to reach your goals is gathered.

Step 3: Analyze the Data:after You've gathered the relevant data, now analyze it.match your goals with the options available in the market.

Step 4: Develop the Plan: Financial planning requires devising alternative solutions that are achievable for each individual. With so many different variables to consider, your plan needs to develop, to evolve with your needs but remain within your capabilities and risk tolerance.

Step 5: Implement the Plan
Now you simply put your plan to work! But as simple as this sounds, many people find that implementation is the most difficult step in financial planning. Although you have the plan developed, it takes discipline and desire to put it into action. The point is to make your financial strategies achievable and to consider slowly moving up to desired savings rates rather than jumping into something that may be challenging if implemented too fast for your comfort level and budget.

Step 6: Monitor the Plan
It's called financial planning for a reason: Plans evolve and change just like life. Once the plan is created, it's essentially a piece of history. This is why the plan needs to be monitored from time to time. Think of what can change in your life, such as marriage, ​the birth of children, career changes and more. These events all require new perspectives on life and finance. Now think of financial changes beyond your control, such as tax law changes, interest rates, inflation rates, stock market fluctuations and economic recessions.

Keep referring back to the steps as significant life or financial changes occur, sit down and re-evaluate your plan on a periodic basis, such as once per year.

according to me the basic process of financial planning are...

1. Determine Your Current Financial Situation:- In this first step of the financial planning process, you will determine your current financial situation with regard to income, savings, living expenses, and debts. Preparing a list of current asset and debt balances and amounts spent for various items gives you a foundation for financial planning activities.
2. Develop Financial Goals:- You should periodically analyze your financial values and goals. This involves identifying how you feel about money and why you feel that way. The purpose of this analysis is to differentiate your needs from your wants.
Specific financial goals are vital to financial planning. Others can suggest financial goals for you; however, you must decide which goals to pursue. Your financial goals can range from spending all of your current income to developing an extensive savings and investment program for your future financial security.
3. Identify Alternative Courses of Action:-Developing alternatives is crucial for making good decisions. Although many factors will influence the available alternatives, possible courses of action usually fall into these categories:
a.Continue the same course of action.
b.Expand the current situation.
c.Change the current situation.
d.Take a new course of action.
4. Evaluate Alternatives:-You need to evaluate possible courses of action, taking into consideration your life situation, personal values, and current economic conditions.
Consequences of Choices. Every decision closes off alternatives. For example, a decision to invest in stock may mean you cannot take a vacation. A decision to go to school full time may mean you cannot work full time. Opportunity cost is what you give up by making a choice. This cost, commonly referred to as the trade-off of a decision, cannot always be measured in dollars.
Decision making will be an ongoing part of your personal and financial situation. Thus, you will need to consider the lost opportunities that will result from your decisions.
5. Create and Implement a Financial Action Plan:- In this step of the financial planning process, you develop an action plan. This requires choosing ways to achieve your goals. As you achieve your immediate or short-term goals, the goals next in priority will come into focus.
To implement your financial action plan, you may need assistance from others. For example, you may use the services of an insurance agent to purchase property insurance or the services of an investment broker to purchase stocks, bonds, or mutual funds.
6. Reevaluate and Revise Your Plan:- Financial planning is a dynamic process that does not end when you take a particular action. You need to regularly assess your financial decisions. Changing personal, social, and economic factors may require more frequent assessments.
When life events affect your financial needs, this financial planning process will provide a vehicle for adapting to those changes. Regularly reviewing this decision-making process will help you make priority adjustments that will bring your financial goals and activities in line with your current life situation.