Financial Planning is a roadmap to realise and achieve financial goals in life. The process of financial planning involves identifying the financial goals in life, based on the person’s financial position and risk profile charting out a feasible plan to a achieve those goals. Financial Planning includes identifying goals, making the plan, allocating resources and regular review.

Common Financial Goals that Every Person has in Life:

Everyone has various financial goals in life. Through proper Financial Planning a person can achieve various financial goals in life.

Every Financial Goal revolves around a Number. Sample this……..

· Will Rs 20 Lacs be enough for my son’s MBA 15 years down the line?

· Will Rs 9 Lacs take care of my daughter’s wedding 3 years from now?

· Will I be able to buy a house worth Rs 35 Lacs 7 years from now?

· Will I be able to enjoy a vacation with my family once in every 3 years?

· How do I retire with an Rs 1 Crore retirement fund?

The RBI announced its Second Quarter Review of Monetary Policy for the Year 2009-10 today and as expected, has left the key rates unchanged. Though the RBI kept key rates unchanged, it hiked Statutory Liquidity Ratio (SLR), the deposits that commercial banks are to park in government securities, by one percentage points to 25 per cent.

While this should have brought some cheer to the markets, they plunged deeper into the red not only because the RBI looks set to raise interest rates going forward, but also because the central bank has upwardly revised its target inflation by March 2010 end to 6.5% from 5% earlier.

The upward bias in interest rates was apparent from the RBI's move to hike the statutory liquidity ratio (SLR) to 25% from 24%. Having said that, whether interest rates in the future rise or not will depend on whether the inflation continues to rise the way it is doing now, and the economic momentum continues to pick up pace.

Remarks by Dr. D. Subbarao, Governor, Reserve Bank of India at G-30 International Banking Seminar in Istanbul on October 5, 2009 organized on the occasion of the IMF-World Bank Annual Meetings 2009.

1. From the perspective of Emerging Market Economies (EMEs) and particularly for that of India, I will highlight five concerns. These are: first, timing of exit from the accommodative monetary policy in the context of rising food price-led inflation but still weak growth; second, the possibility of another surge in capital flows, especially if we turn out to be an outlier in withdrawal of monetary stimulus; third, monetary transmission mechanism as it is evolving from the crisis period; fourth, return to fiscal consolidation and quality of fiscal adjustment; and finally, the implications of the efforts towards financial stability on financial inclusion and growth.