Why is a financial plan important?

Most investors chase returns. However, that’s a race you can never win because returns are not controllable! The only thing that is controllable is “how” you invest – that is, your investing discipline, your resilience during volatile markets, and how you are able to control greed and fear driven decisions. One of the important aspects of financial planning is investing according to goals. When you invest with clearly defined goals such as retirement, child’s education or marriage or a loan prepayment, you automatically become a much better investor because you stop getting swayed by market movements. Additionally, with a strong purpose guiding you, you become more disciplined with your savings as well.