Financial Planning: Your Roadmap to a Secure Future
Prachi Wagh, CFP
Certified Financial Planner | Wealth Leadership Coach -SunYta
Just like for an Architect it is very important to design a Model Blue Print of the project before the actual construction work begins similarly for any individual who is desiring to build a wealth over a longer period of time say roughly within 30-35 years, it is very very important to have a Blue Print of the Financial Plan ahead of the actual Financial Journey to Start with!!
Our life’s most important years begin from the age of 25 to 26 where most of us start earning money. Solid financial foundation when built from the early stage where an individual begins earning money helps to navigate the complex real-life situations more precisely & consciously. Understanding the most important principles of Financial Planning is very crucial at this stage because the financial decisions that we take consciously at this stage decide our future Financial Journey.
Financial planning goes beyond wealth creation—it is also about mitigating risks and ensuring that your money is not diverted into unfavourable avenues that can hinder long-term wealth building.
A financial plan is the blueprint of your dreams — without it, you’re just building on guesswork.
Let us understand with an example of Mr. Sharma’s Financial Journey. Mr. Sharma a 28 year old bachelor & a resident of Delhi is an IT professional. He currently lives in Bangalore away from his Family. He recently purchased a spacious 1 BHK apartment in the city of Bangalore with a home loan of Rs. 80 Lacs for the tenure of 30 years at rate of interest 7.5% p.a. It is very convenient for him to travel to office from his new home & is of the opinion that staying at own house is always preferred option verses the rented apartment & its an asset that he has created.
Buying own house is very close to everyone’s heart and one should definitely buy one. But in case of Mr. Sharma, he will be paying an EMI of Rs. 55,937 for the next 30 years of his life where he will be paying Rs. 1.21 crore solely as an interest for the loan amount of 80 Lacs.
Mr. Sharma can afford the EMI under his current income so from his point of view it’s a good choice he made. Now suppose consider there happens a situation in which Mr. Sharma has to relocate to some other place towards his job commitment then what? The apartment he purchased & considers as an asset of him suddenly becomes an illiquid asset. He is left with no option other than to Rent or Sell the house both in case is not that easy & convenient.
Here in case of Mr. Sharma Renting an apartment would have been a better option verses Buying. Burden of EMI is an opportunity cost for him because the same amount of Rs. 55,000 if invested every month for the next 30 years would generate a corpus of Rs.16.94 crore for him with a CAGR of 12% p.a.
This is just a hypothetical example to help you understand how Financial Planning is a crucial aspect for every individual. It plays a pivotal role in crafting the Personal Financial Journey.
Start planning your finances the way an architect designs a home — with clarity, structure, and purpose.
Financial Planning is more than just managing your money – It is the art of aligning your resources with your life goals. Whether it is buying a home, planning for your child’s education fund, building a retirement fund to live comfortably or creating a wealth, Financial Planning is Blue Print that provides a roadmap to achieve these goals with clarity & confidence.
Without a Financial Plan money decisions are often ad-hoc and reactive. A well deigned plan sets clear financial goals & provides a structured path to reach them.
Financial Planning is not a luxury; it is a necessity. Just as you wouldn’t begin the construction of your home without a proper architectural plan, you should not navigate life without a robust Financial Plan. The sooner you start, the stronger your financial foundation will be.
Take the first step wisely & your future self will Thank You surely!
Originally Published on Oct 14th, 2025