6 Financial Planning Mistakes that can change life

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Investment is a process or an action undertaken with an expectation to generate profit in future. In the dynamic environment, we live in it has become a very common tool used by people at almost all the levels, making proper financial planning an integral part. However, the investment mistakes a person makes can change its life. Money is a very vital part so decisions regarding how to invest money and where to invest money should be taken with utmost care. Investments, if put to good use, can yield great benefits and vice-e-versa. Therefore this tool/process called investment should be used wisely.

“Failing to plan is planning to fail”-Alan lakein

Therefore proper financial planning is very important for safeguarding your and your loved one’s future.

Health is Wealth:

The basis on which a person’s life and activities rest is Health. Being the most important aspect it is the most vulnerable aspect as well and so it should be backed up by good financial planning.

For example, Mr. Shyam Agarwal is a man oriented to the service industry. He meets with an accident which led to the fracture of his leg and some other injuries. He had to be hospitalized and the hospital bill amounted to Rs.109000. He did not know about the situation in advance so had a lot of difficulties in paying the sum at once and did not have a health insurance to support it either.

Here health insurance comes into the picture, it as an insurance which ensures a certain percentage of coverage of medical bills in case of any unforeseen medical circumstances like disease, accident etc. in lieu of which it takes periodical payments called premiums.

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