In today’s dynamic world with distractions at every corner, what can bring some structure to one’s life and help us move towards a balanced future is holistic life planning.
Holistic life planning does not just involve the financial part, but encompasses multiple dimensions of one’s life such as the physical, mental, emotional and other aspects than can lead to a meaningful outcome. But it’s only financial planning that can bring together all aspects to create a holistic vision. It allows us to pursue our passions, secure our future, and attain peace of mind. Here’s a three-pronged strategy that can help you in this journey.
Saving Wisely
Saving is at the heart of good financial planning, but it’s more than just putting money aside, it’s about building a cushion that gives you peace of mind and a sense of freedom.
On a practical level, it means following a budget and cutting back on unnecessary expenses. One effective approach is the 50/30/20 rule, under which 50 per cent of your income goes towards essentials, 30 per cent towards the things you enjoy, and 20 per cent towards savings. Following this rule can help build a positive savings mindset.
"While saving is the first step, putting that kitty to work by making the right investments can make the real difference"
Life can throw curveballs unexpectedly, so it’s also important to prioritise an emergency fund. This should be saved in a liquid instrument, so that you can access the funds immediately in case of emergencies. Having this safety net can help you stay on track without derailing your financial plans.
But saving isn’t just about the numbers. Asking yourself, “What truly matters to me?” can help you shift your focus from just accumulating wealth to finding what brings real value to your life.
Investing Rightly
While saving is the first step, putting that kitty to work by making the right investments can make the real difference. Also saving is the easier step because successful investing requires both strategy and wisdom. It necessitates recognizing your risk tolerance, diversifying your portfolio, and staying current on market trends. More significantly, it values patience and long-term vision over immediate benefits.
You should make your investments based on your personal aspirations and the values you uphold.
Planning Smartly
Strategic planning entails defining realistic goals and then working towards them. So if you want to purchase a house, plan ahead for the downpayment to make your dream come true. Similarly, you can follow an organized approach to realise other goals as well. However, don’t forget to do an annual review to ensure that your overall planning keeps adapting to the changes in your life.
It’s also important to consult a financial expert, who can give unbiased advice and tailor the plan as per your unique needs and circumstances.
By adopting a holistic approach to life planning, individuals often discover that their path to financial stability and personal fulfilment becomes clearer and more achievable. In most cases, both move in tandem. The best part is that such holistic planning takes you closer to life’s bigger picture, aligning financial strategies with personal goals and meaningful contributions to society.
Disclaimer: Investor Education initiative from ABSLMF. Mutual Fund Investments are subject to market risks, read all scheme documents carefully. This article provides general information and should not be considered financial advice. Consulting with a qualified professional is recommended to assess your individual circumstances and make appropriate financial decisions.
