Financial Planning and budgeting is an exercise. It first looks at your situation, understands you and your financial aspirations and articulates these into numbers. Before it advises a product, it seeks answers to questions like

»   At current inflation, how much would higher education cost 12 years from now, and how
     much do I need to save every year to accumulate this

»   If I need 1 lakh today to manage my personal expenses, how much would I need 15
     years from now when I retire

»   How much of insurance cover do I actually need

»   Retirement Plans

»   Plans to beat inflation

»   Insurance

»   Investments ( Equity and Mutual Funds )

Financial Planning is probably the most important aspect of investments. It helps you understand and appreciate the importance of starting early, managing your risk and having a structured approach rather than make ad-hoc investments.