• HDFC
• 26 Jul 2018
• Knowledge Centre

HDFC, Tester

A financial health check-up is just like your regular health check-up. Here, a financial expert will analyze your assets, your income, and your financial goals, in order to give you sound advice on how to invest your money. Let us take a closer look at this procedure and why it is important for you.

 

The Check-up

 

• Assets: Any expert will first take a look at your assets. This includes your properties, your liquid assets, your investments and everything else you own. This will help the professional understand how much value you already hold.
• Income: The next aspect of the check-up involves the income you earn. This helps the expert gauge your potential earnings, and your market value as an investor. Your income does not just include your salary, but also the income generated from any property you have put up for rent or any business you may have invested in.
• Expenses: Your expenses need to be lower than your income. This is a no-brainer. However, determining how much you can lower your expense is an important factor in determining what sort of an investment plan you can opt for. Even then, a financial plan may not work out if your expenses are not in line with your financial goals. The difference between your savings and your income is the surplus. And you will be heavily reliant upon this surplus for your investment needs.
• Financial Goals: Once your assets, income, and expenses have been examined, the next stage requires an understanding of what you want. This means that you will need to lay out your financial goals. Do you have an appetite for high risk or do you prefer low risk? Are you looking at a long-term gain or a short-term gain? The financial professional will need to know all this to come up with a suitable plan.

 

What is the benefit of this check-up?

 

Irrespective of whether you’re looking for a specific need or simply want to be assured about your finances, getting a financial health check-up done is an excellent idea. Here are some benefits of the check-up.

 

• Financial health check-ups are easily available. It is a review with a highly trained personal banker either over the phone, video call or in person.
• The discussion is often focused around your personal needs and future goals.
• It considers all your finances and helps you make informed decisions.
• A financial health check-up will help you understand your finances better, enabling you to save your money or invest wisely, ensuring that you are well protected.
• It also ensures that everything is organized in the best way possible, making it more effective and convenient for you.
• In case you need further help, the professional will refer you to another specialist team that can help resolve all your concerns.

 

As mentioned earlier, everybody’s financial goals vary depending upon their situation (assets, income, and requirement). Consequently, everybody requires a customized financial plan. Therefore, it is important for you to get a thorough check-up of your finances, in order to come up with the right investment plan that works for you.