Financial Planning – Can’t Do Without It

“Boom Boom” Becker, the youngest winner in Wimbledon's history, who claimed the first of three titles aged just 17, ran his fortune to the ground. Having declared bankruptcy in 2017, the tennis legend is auctioning off 82 items including medals, cups, watches and photographs in order to pay off some of his debts. 

Tennis star of the 80’s, Boris Becker amassed a neat fortune over the years as he accumulated trophies and prize money. A six-time Grand Slam winner, he has won 49 titles and more than 20 million euros in prize money during his career. However, he stands today bankrupt and upto his nose in dues. Nobody ever really thought that when you tell the story of Boris Becker there would be anything that would eclipse his tennis prowess. Yet, the story has taken a turn and the spotlight is now on how he mismanaged his finances. There is a lesson to learn from Becker, and it is not just tennis. 

Many of us make the same mistakes as Becker did i.e. we do not invest wisely. It is incumbent upon us as individuals to meet our financial goals and to create a nice retirement fund. This entails having a robust financial plan in place.

Creating your Financial Plan

- Determine your goals and the timeframe for achieving each goal

- Determine your current and future income along with your current and future expenses

- Assess your assets and liabilities

- Determine the amount of money you need to save on a monthly basis in order to achieve your future goals

- Also, keep aside money for emergencies and your retirement

- Put together a monthly budget that will help you save the required amount

- Make an investment plan that aptly reflects your risk profile while being capable of generating the desired return

- Ensure that you build a well-diversified portfolio

- Monitor your financial plan regularly and ensure that it is agile enough to incorporate any material changes in your circumstances or goals

- Be patient and stay committed

The very purpose of earning money is to ensure that we can afford a stable and comfortable lifestyle. However, instead of adopting a myopic view, we must put together a financial plan that ensures that we not only have a great present, but also a great future. While the mighty fall the hardest, there is never a smooth landing for those who fail to have a robust financial plan. Take the first step towards a secure financial future. Start your financial planning journey now!