Importance Of Planning To Fund Future Goals

Importance Of Planning To Fund Future Goals

- Shekhar Agrawal 

I n everybody's life there are some typical financial goals like children's education, their marriage, one's own retirement, owning or building a house, and so on. Each of these future -goals has a cost attached to it, which unfortunately increases every year due to inflation. For instance, funds required for a child's education today and 15 years later would be dramatically different. Therefore, to ensure that you have sufficient funds for your future goals, you need to acknowledge the importance of financial planning through appropriate investments.

Consider this example: if you are in your mid-thirties with two children and have 24 years of working life ahead of you, the total corpus required would be *8.54 crore for your children's education, marriage and your retirement. If the current education cost is 20 lakhs, you would require nearly 36 lakhs for your first child's education in 2031 after taking inflation into consideration. This would go up to 48 lakhs for the second child in 2036. Further, the cost of marriage which currently may be at 40 lakhs will shoot up to 1.07 crore for the first child in 2038.