World Financial Planning Day 2023: What is an ideal age to start financial planning?

World Financial Planning Day 2023: Perhaps even more crucial than having money is managing it. After all, gaining money and not using it wisely defeats the purpose of getting it in the first place. Planning your finances becomes important in this situation. It supports you as you go through various life phases and encounter difficulties. Financial planning is obviously a crucial step that we must do as soon as we begin to earn money.

According to D Muthukrishnan, a certified financial planner with offices in Chennai, “as long as there is money, there needs to be planning.”

World Financial Planning Day 2023

It’s World Financial Planning Day today, October 4. The International Organisation of Securities Commissions (IOSCO) is behind this project. The goal of World Financial Planning Day is to increase public awareness of the value of financial planning.

What is an ideal age to start financial planning?

According to experts, it’s better to start one as soon as you start earning money and to modify it as needed as you advance in life.

“Financial planning ought to begin as soon as income is generated. One should pursue financial planning as soon as they begin to receive a salary. The plan should start with basic hygiene components like an emergency fund, term insurance, and health insurance, according to Muthukrishnan.

Maximizing Your Bonus and Variable Income: Tips and Strategies for Making the Most of It

The planning, he continued, grows more intricate and continues far into retirement and beyond as one’s profession develops and their position changes from being single to having a family.

According to Aditya Shah, the founder of JST Investments, the best time to begin financial planning is as soon as one begins to earn and save money.

“Regardless of age or income, the time to begin financial planning is the moment you begin earning. Starting early is crucial because financial planning involves arranging everything from insurance to asset allocation in the end. It is crucial to begin when since getting insurance in the early years is relatively simple, according to Shah.

The ideal age, according to Deepali Sen, Founder Partner of Srujan Financial Services LLP (a Mutual Fund Distributor), might, however, vary from person to person based on their circumstances. Sen advises that it should start as soon as the client has some extra cash to invest (either earned or received as pocket money).

“Investing money for future goals is the first thing to do when there is a surplus. After some cash has been set away for emergencies, this should be done. The goals must then be categorised as short (up to two years), medium (between two and seven years), or long (more than seven years),” she suggests.

According to Viral Bhatt, the founder of Money Mantra, the earlier you start saving and investing, the more time your money has to grow. He also explains that even if you can only save a modest amount each month, it will add up over time. Additionally, starting young can assist you in creating sound financial practises that will serve you well all through your life.

Benefits of Financial Planning

Bhatt provides the following benefits of beginning financial planning early:

More time for your money to grow: As was already discussed, compound interest gives your money more time to grow the sooner you start saving and investing.

More adaptability: By beginning your financial planning early, you give yourself more adaptability to adjust your strategy as necessary. You can modify your plan if, for instance, you decide to have children or launch a new business.

Less stress: Knowing that you are on pace to attain your financial objectives might help you relax if you have a financial plan in place. This can ease worry and stress related to the future.