The Integrity Way 

Most of us, throughout our adult lives, have some kind of financial responsibility, or goals for that matter. While our immediate focus is usually centered around dealing with our day to day expenses, we also dream of a better future for ourselves and our loved ones. A future where we may among other things, want to own a home, be able to give our children the best education possible and lead a dignified life after retirement.

Fulfilling these goals requires money. The costs associated with these goals increase every year due to inflation. And although we all work very hard at our jobs year after year, we often cannot seem to find the time to structure a plan that can help us accumulate wealth and fulfill all our financial goals effectively.

We at the Integrity Way, believe that a little personal financial planning, when done right, goes a long way towards securing our financial future. It helps deal with the “what ifs” that life throws at us, for example - an eventuality, a job loss or a large unforeseen medical (or other) expense. Financial planning also enables our money to generate returns that beat inflation comfortably and helps us fulfill other short term and long term financial goals. A structured, tax-efficient financial plan can very easily add a few percentage points to one’s annual return on investment, the benefits of which are pretty significant in the long run. 

Here's a fun fact - If a monthly investment of Rs 10,000 gave an annual return of 10% instead of 8%, the difference in the value of the investment after 35 years would be Rs 2.4 Crores. As you can tell, a seemingly insignificant addition of two percentage points to one’s annual return can make a huge difference over the long term.

Also a fun fact - if a person starts investing Rs 10,000 per month at the age of 25 instead of at the age of 35, assuming a 10% annual return on investment, the 10 year head start would have helped them accumulate an additional Rs 5.3 Crores when they turn 60.

What these fun facts suggest is that structured financial planning can make a significant contribution towards generating wealth over the long term and the sooner it is implemented, the better. It also shows that if we were to change the Rs 10,000 investment to a Rs 1 Lakh investment, the benefits over the long term would be staggering in absolute terms.

It is also worth mentioning here that a "bad" financial plan that does not follow the principles of financial planning and includes random investments in unsuitable products can possibly do more harm over the long run than putting all your money in fixed deposits or a savings account. A financial plan done right, on the other hand could change your life for the better. Start your journey here.

Several concepts and principles that form the basis for sound financial planning are discussed here in our blog. Please contribute with comments, suggestions and questions. We also offer help with understanding the basics of Financial Planning and can assist with getting you started on the road to structured investing. And we never charge you any money! Feel free to contact us with your questions.

We do not sell any product, and we do not provide stock picks, fund picks, or specific financial recommendations of any kind. We only help you to help yourself. We DO NOT charge fees or accept any funds for the help we give. We are not SEBI-certified financial planners or advisors and are not associated with any other commercial entity.