Feeroj Nasirkhan Pathan

ABSTRACT

Individual investors, people tend to overspend when they do not understand what they really need. They| keep on spending to fulfill all their requirements and lose count of how much they have spent. Everyone, should understand the difference between needs and wants. ‘T'his is what financial planning is all about to save and help our self to achieve our financial goals. Whereas SMEs are concern they always find it difficult to secure finances even at the best of times. While their capital base is weak, sometimes even to the level that they often find themselves unable to offer appropriate collateral security, banks seems to refrain from advancing even medium-term loans for buying equipment and machinery. As a result, most SMEs find it easier to follow the conditions of local money lenders than those laid down by commercial banks. Despite several credit recommendations by the Reserve Bank of India (RBI) and promises by the government, it seems that the situation is not going to change in the near future. Therefore in this scenario financial planning is a must for SMEs to have some fair idea about how to make the best of the available resources. Keywords: SME, Financial planning process, Smart Goals, Risk vs returns, investment strategies.