Tips For Financial Planning | Fusion - WeRIndia

Tips For Financial Planning

Financial Planning Tips

Depositing change in a piggy bank is a frequently used savings strategy in our child hood. But now we should know about many things before savings like interest rate, saving account, bank terms & conditions, taxes, because we cant save big amount in a piggy bank.

Financial planning is important like as important to earn money for our lives.

As you enter your thirties your roles and responsibilities change tremendously.

You may not be single anymore and must think about prosperity and security of those who depend upon you.


When you and your partner are busy balancing everything in your lives, sometimes financial planning can fall to the wayside.

One suggestion from our side is Earn, Save & invest.

 

 

Following are the financial planning tips for when life gets hectic:

 

1. Review previous budget

Have a look on your previous budget? How much you earn?

Where you invest? How much you invest? How much you invest on your monthly expanses?

How much you save? If you have these questions answer you can easily make plan for budget in future.

Also you will know your extra expanses, you can have control on those.

 

2. Check your interest rate

Have a look on the interest rate you are getting?

Which saving account should you open? Check & compare all the bank interest rate and open one with the best interest rate.

Also ask about the loans & interest rate on that, if sometime you required to apply for loan it will help you to make plan accordingly.

Paying attention to interest rates will help inform which debt or savings commitments you should focus on.

 

 

3. Create a Budget

Creating budget is basic, but important to manage the budget.

By creating a budget, you can limit each expense so that you do not live beyond your means.

If you missed out on this last year, begin from this year infact today by creating a budget for the year so that you can control your spending.

How much you earned and where your money went makes you aware about your financial situation. Keeping a check on expenses has two benefits.

First, you can know the excess outgo and second, you can analyse the spending habits of your family members.

If the budget is going out of control, this will help you know where to take corrective action.

 

4. Make Savings with your Monthly Budget

If you are planning to put money aside for when you consistently have enough of a cash cushion available at the end of the month, you’ll never have money to put aside. 

Instead that plan to save money at the start of the month. Save the amount in a separate saving account.

As you plan at the starting of the month; where to invest? how much to invest?

Make one column for saving and decide the amount at the starting of the month.

Keep the amount in your saving account and avoid to invest without any plan.

If you have any plan for the investment than you can use savings but firstly try to figure out what benefit it will give to you.

 

5. Maintain an Emergency fund

No matter how much you owe in student loan or credit card debit card, and no matter how low your salary may seem, it’s wise to find some amount of money in your budget to save in an emergency fund every month.

Having money in savings to use for emergencies can keep you out of trouble financially.

Your finances are worst-hit when you fall ill or lose your job. If you do not have funds for such emergencies, you may have to tap into savings you may have kept for your life goals. most of us have loans to pay, and any emergency can lead to default.

So, it’s necessary to have an emergency fund.

 

6. Set Goals for yourself:

it’s important to ensure that you set goals that are measurable in monetary terms and achievable within your resources.

All of us has goals, be it riding high in career, buying a house/car or providing good education to children. Each of these are important.

Set one more goal by planning your saving for next six months or one year.

Set goal for savings, if possible decide an fixed amount for saving monthly and put that amount in saving amount.

These savings will help you to achieve your career goal, in any emergency and to complete your requirements.

Start your financial planning today and make your future more secure and live a luxury, comfortable and prosperous life.

Photo by Alexander Mils on Unsplash (Free for commercial use)


Image Reference: https://unsplash.com/photos/lCPhGxs7pww

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