INSUBCONTINENT EXCLUSIVE:
Perception: A well-written financial plan will bring financial success.Reality: A well-written financial plan needs to be well-executed to
bring financial success.It is an illusion that a well-written financial plan will automatically bring financial success
Investors, at times, underestimate the challenges they need to overcome when executing their plan
The following three key things are to be considered for the success of a well-written financial plan:1) Financial Plan Implementation:An
unimplemented financial plan is like a train standing on a railway track
It is not sufficient for a train to be on the right track
The train needs to run on the right track to reach its destination.Similarly, a financial plan needs to be implemented effectively to
achieve success.You may face challenges in surrendering some of the insurance policies or dematting the physical shares
In the beginning, it will look like a lot of work.If you start postponing this work, then it will be difficult for you to resume and finish
it.So when you have a tedious task to be implemented, don't focus on the entire work
You focus only on the next step
The next step may be just to contact your insurance agent to understand the surrender procedure or to locate all the physical share
certificates.By focusing just on that micro item at a time, things will become easier for you to implement.2) Accountability:You are
responsible for where you are financially right now
It is your responsibility to implement your financial plan to reach your desired financial destination
Taking that responsibility to drive the financial plan to success is very important.Your inaction is also a decision
Instead, take conscious decisions then and there
Many times, delaying a set of small decisions will stop and stagnate your financial plan
So please take responsibility to take decisions on time to implement the plan without any break.When you implement you may get questions
like:Should I invest online or offlineShould I invest through an agent or directShould I invest at the beginning of a month or at the end of
a monthNot taking decision on these will stop your investments
Either of the choice will be definitely better than not investing.3) Course correction:It is difficult to stick yourself 100 per cent to the
There will always be a few changes (due to inflation, economic growth and political stability) and deviations (due to updated lifestyle or
goals, increased spending behaviour and emergency expenses).You need to do a course correction with the expertise of a Certified Financial
Planner (CFP) to accommodate the changes and control/manage the deviations.You need to be flexible enough to accept the changes and
If you are taken back by these small changes, then you may lose interest in your financial plan.If your insurance company wants you to
surrender the policy only in the next quarter, there is nothing wrong to wait and do it
This can be easily accommodated in the plan.Bottomline:Please make sure, if your financial planner will just help you in creating a written
financial plan or will also act as a financial coach in executing the financial plan.(K
Ramalingam is the chief financial planner at https://www.holisticinvestment.in, financial planning and wealth management
company.)Disclaimer: The opinions expressed within this article are the personal opinions of the author
The facts and opinions appearing in the article do not reflect the views of TheIndianSubcontinent and TheIndianSubcontinent does not assume
any responsibility or liability for the same.
