The adviser introduces themselves, explains the financial planning process, and uses open-ended questions to uncover the client's financial goals, risk tolerance, and dreams. This approach ensures that financial goals are personal and meaningful, aligning money's purpose with life goals. Questions such as "What are your feelings about investing in the stock market?" and "How do you plan to save for retirement?" help clarify these goals, guiding investment and financial strategies.

This step involves gathering essential information to make strategic financial recommendations. Key considerations include your time horizon (5, 10, 20, or 30 years), risk tolerance (high or conservative), and current progress towards your goals, such as savings, life insurance, and a will. For example, in retirement planning, you'll need details like annual income, savings rate, years until retirement, eligibility age for Social Security or a pension, current savings, future savings plans, and expected rate of return. Documenting this information helps visualize the data needed for prudent investment decisions.

Let's say you need ₹10 crore to reach your goal, but your current plan is ₹1 crore short at ₹9 crore. If you can handle more market risk, you could increase your exposure to stocks in an aggressive portfolio and assume a 9.00% return. With all other factors the same, this increased return could bring your 30-year nest egg to nearly ₹12 crore. Alternatively, keeping the return at 8.00% but increasing your savings to ₹25,000 per month could bring you close to your goal with ₹9.9 crore. This step highlights the importance of developing adaptable financial plans that evolve with your needs while staying within your risk tolerance and capabilities.

Let's say you need ₹10 crore to reach your goal, but your current plan is ₹1 crore short at ₹9 crore. If you can handle more market risk, you could increase your exposure to stocks in an aggressive portfolio and assume a 9.00% return. Keeping other assumptions the same, this higher return could grow your 30-year nest egg to nearly ₹12 crore. Alternatively, keeping the return at 8.00% but increasing your savings to ₹25,000 per month could bring you close to your goal with ₹9.9 crore. This step emphasizes "developing" financial plans that offer alternative solutions, adapting to your needs while staying within your risk tolerance and capabilities.

Now, put your plan into action! While it may seem simple, many find implementation the hardest part of financial planning. Despite having a plan, it takes discipline to save ₹20,000 to ₹25,000 per month. You might fear failure, leading to procrastination. Successful investors stress the importance of just getting started. You don't need to begin with high savings or advanced strategies. Start with one fund or save a few hundred rupees per week to build your first investment. Make your financial strategies achievable, gradually increasing savings rates rather than jumping in too quickly, to stay within your comfort level and budget.

Financial planning evolves just like life. Once created, a plan becomes outdated, so it must be monitored and adjusted regularly. Life events like marriage, having children, and career changes require new financial perspectives. Financial changes beyond your control, such as tax laws, interest rates, inflation, market fluctuations, and economic recessions, also impact your plan. Constant change necessitates ongoing financial planning. The six steps of financial planning apply to all areas of personal finance, including insurance, tax planning, budgeting, estate planning, investing, and retirement. Regularly revisit and adjust your plan, just as professional financial planners do, ideally once a year.