Financial planning is important to keep track of your finances & use your money wisely, from earnings to investments to expenditures, the planning needs to do for everything. Every month you may be earning a fixed amount of money or some variables as well so you have to manage it wisely to gain more out of it.
But if you don’t manage it well, you may be losing it. It will derail your plan for something, maybe for your career or maybe for something others.
Below are some tips for your financial planning:
- Setup your goal
You should have a clear goal about how to manage money, and what you are going to do with all that money, and plan accordingly. Anticipating is a good practice to manage finances better as you get a lot of questions in your mind.
Just note down the questions about different events going to happen in this calendar year. Calculate your monthly expenses & multiply with 12 + extra expenses related to different events + other expenses if any.
- No Debt
Try to avoid taking debt unless it’s very necessary. Taking a without-purpose loan will put an extra burden on you, you may have to pay extra loan interest.
- Avoid Credit Card Purchase
Credit card is designed to encourage users to spend extra and they give you all kinds of lucrative offers to use it. We also get carried away to use it and end up creating debt for ourselves.
- Take an investment plan for yourself and your family
There are a variety of options available for investment. For example, mutual fund, stock market, IPO, PPF, fixed deposits & others. You can plan your investment according to your requirements and convenience.
- Pay debt on time
Don’t miss that or you will have to pay an extra fine for that so keep checking on your debts or investment & their updates.
- Don’t compare
We often compare with others, especially material stuff, and want to buy it to match that status and end up losing money that could have been saved for something important. Don’t buy unimportant stuff, use that money to grow in your career.
