DIY – Free Monetary Planning Instruments


Monetary planning means bringing the longer term into the current with the intention to do one thing about it now. Monetary planning is a technique of using out there monetary sources in the absolute best method to attain your objectives.  It’s not nearly investing cash; it’s about investing cash the precise means, to attain particular monetary objectives.

However why do we have to do monetary planning and which instruments must be used to do it?

Why is monetary planning essential?

Let’s attempt to perceive the necessity for monetary planning by a narrative.

That is the story of  Mr Kumar & Mr S.Kumar.

Mr Kumar is 40 years previous. He has a job in an MNC and he earns an honest wage. Like the remainder of us, he works laborious, earns nicely & makes certain that he enjoys life off the cash he makes. Regardless of incomes nicely, more often than not, Mr Kumar stays underneath strain on account of lack of cash on the finish of each month, not solely that he’s nonetheless residing in a rented residence & makes use of public transport for his commute.

Financial Planning

Now let’s meet Mr S Kumar, a colleague of Mr Kumar’s (Age 35 years) with the identical wage construction. Mr S Kumar manages his funds nicely and by the tip of each month, not like Mr Kumar, has spare cash left with him. Not solely Mr S Kumar lives in a self-owned home and owns a automobile, he additionally has adequate financial savings and has executed investments in a number of avenues.

Why? What’s modified?

It’s as a result of Mr S Kumar understands the significance of monetary planning.

He is aware of very nicely that –

Inflation Kills

Inflation eats away your cash. It’s essential to have heard out of your father that he would buy petrol at Rs.30 per litre and as we speak petrol prices round Rs.100 per litre. This regular rise within the value of products and providers is named inflation.

Emergency Fund is extraordinarily necessary

You by no means know when a monetary emergency might come knocking at your door. Whether or not it’s surprising medical conditions, accidents or lack of job. Uncertainty is the one certainty in life.

Retirement Corpus is important

With pensionable jobs, our mother and father had it simple. The federal government used to wholly fund a person’s retirement by contributing to the pension funds. At the moment, part of our wage is deducted for a similar.

Owing to the elevated price of residing, our guardian’s retirement funds may need been adequate previously. However we have to plan higher, to reside a cushty retired life with adequate funds to our identify.

Insurance coverage is crucial

Insurance coverage is a safety in opposition to unexpected occasions that may trigger monetary misery. Insurance coverage supplies safety in opposition to occasions akin to accidents, unexpected injury to property, medical mishaps and even demise.

Investments are connected to objectives

Every funding you make should take you a step nearer to your monetary objectives. Funding with out objectives is like firing a bullet into the vacuum. Targets could possibly be planning your taxes, a dream vacation, shopping for a automobile and many others.

Money Move administration is Key for fulfillment

You have to make the most of your monetary sources successfully. That is the place money stream administration – incomes and spending cash performs an necessary position in monetary success.

Monetary Viability is essential

We have to perceive that monetary viability is essential. Monetary viability means producing adequate earnings and consistently upgrading way of life with a rising want.

So, from above it’s clear that Mr S Kumar has higher monetary administration & management in comparison with Mr Kumar. He has deliberate his funds and invested accordingly to attain his objectives.

Additionally learn – Monetary Planning Actual dialog – Vaniya Buddhi

So if you wish to be like Mr S Kumar or in case you are in a scenario just like Mr Kumar’s you propose your funds.

There are two methods of managing your funds:

#1 DIY – Free Monetary Planning Instruments – Recipe

Monetary planning executed by oneself with restricted assist of an professional, excel sheet, or instruments is called DIY (Do It Your self) monetary planning. This sort of monetary planning is most popular by individuals like Mr S Kumar who perceive the fundamentals of monetary planning.

Listed below are the steps to comply with whereas doing monetary planning –

Step -1 Understand how a lot you may make investments.

Step-2 Set your objectives.

Step -3 Make investments according to the objectives you set.

Step-4 Regulate your investments. However don’t get overly concerned with each minute element.

Step -5 Preserve a prudent emergency fund to have the ability to cushion doable opposed conditions.

In case you are fascinated with planning your personal funds, you need to use a instrument known as Recipe by Finology that may allow you to in managing your funds. Recipe is straightforward to make use of, and free from human bias on account of A.I. based mostly advice.


This instrument has 4 segments, Prosperity Components, Monetary Urge for food, Aim Planner and Monetary X-ray. 

Prosperity Components

This can be very necessary to know your present monetary standing earlier than partaking in monetary planning. The Prosperity Ingredient section helps you in assessing your monetary place. This section has 4 “components”.

  1. Emergency Fund

Below the Emergency Fund part, you may verify when you’ve got adequate emergency funds for the longer term or not. You have to enter your month-to-month earnings, particulars about your financial institution stability and choose ‘stability’ of your earnings from the dropdown.

emergency fund

When you click on the “Discover Drawback” button, Recipe routinely offers you a response about your required emergency funds. It additionally shows your emergency fund rating.

  1. Insurance coverage Planner

Below the Insurance coverage Planner section, that you must present details about your present life and medical health insurance quantities. You’re going to get an on the spot reply whether or not you will have ample insurance coverage cowl or not.

  1. Debt Prognosis

The Debt Prognosis section is for analysing your debt scenario. Right here, that you must enter your earnings, mortgage, EMI and financial savings particulars to get a debt prognosis.

  1. Spending Habits

The Spending Behavior section helps you gauge your earnings and bills. Based mostly in your earnings in addition to spending habits, Recipe will discover out for you whether or not you might be overspending or saving.

Additionally Learn – DIY, Salesman or Monetary Planner what’s your alternative?

Monetary Urge for food

The ‘monetary urge for food’ part assesses your monetary standing and your angle in the direction of danger and determines the precise funding model that fits your earnings, objectives and danger preferences.

Aim Planner

Aim planner incorporates readymade aim sections akin to little one marriage, trip planning, wealth creation, dream automobile, dream residence, kids’s training, retirement planning and many others. You may plan for every aim by giving easy inputs.

Monetary X-ray

The ‘monetary x-ray’ part offers your full 360-degree monetary report. This report will allow you to in managing your funds and taking intelligent steps to spice up your web price.

Significance of Funding

As we be taught that investing cash in the precise funding possibility is extraordinarily necessary for monetary planning, if you happen to carry on investing cash with out correctly analyzing, chances are you’ll find yourself in a messy scenario. It’s best to have outlined monetary objectives because the data to execute these investments. There’s a instrument known as Quest that provides programs on full private finance.

These programs cowl the next –

  • Significance of saving cash
  • Why investing is so necessary
  • Why debt funds & insurance coverage are important
  • Significance of Aim planning & asset allocation

#2 Rent Monetary Planning Providers – Paid

You want monetary planning providers if you happen to –

  • Don’t have time & vitality to do your personal monetary planning
  • Don’t have adequate experience in areas of funding, insurance coverage, retirement planning.
  • Don’t know the right way to handle funds in a greater method
  • In search of skilled opinion about your monetary plan

If any of the above questions apply to you, it could be time to take assist from a monetary planner to attain monetary success.


Monetary planning is essential these days. It’s best to do monetary planning for a greater monetary future. You can also make use of DIY monetary planning instruments or rent monetary planning providers for monetary planning.







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