Financial planning is a common need for all. Have you ever heard someone saying that spending money is easier than earning money? Have you ever thought about it deeply? Because if you did, then you must have understood that the reason behind it is a poor track of finances.
Everyone yearns for a financially stable life; whether in terms of career or business. However, it is not necessary that everyone can keep their finances in order or prepare a financial plan as it is quite a daunting task.
A lot of people believe that they can achieve financial security sooner if only they know about how to manage their income, investments, and expenses. But thankfully, if you are reading this article then your SOON is about to come.
In this article, we will be covering “what do the experts say?” points to make it easier for you to keep your finances in order. And it will be done in simple, layman language so that you can skip the financial terms and just read the “good part”.
Financial Planning
Before jumping into the action and carrying forward a strategy, a plan needs to be designed. Be it for personal stability or your business, having a financial plan can save you from avoiding uncertain conditions and prepare for future goals.
It is suggested to write down the short and long term goals as per the priorities and start keeping some of the money aside for them. It is easier to save a smaller amount than to spend a large amount at once.
Create a Financial Budget
Once the financial plan is ready, shortlist the unavoidable expenses and finalize a weekly or monthly budget. If the income and expenses are frequent and large, then a weekly budget is suggested to keep a thorough account of the money spent.
Having a budget prepared also helps in organizing the savings and investments which can be used at crucial stages. It also lets you cut down unnecessary expenses wherever and whenever required.
Secured Money for Emergencies
The recent pandemic is the proof that things can take unseen turns at any stage of life. It can affect careers, businesses, even the lives of many. But the only thing you can do is to stay prepared. Keeping a track of your finances helps you classify a part of the amount that you can put aside for emergency situations.
At dire times, the most trustworthy of people may leave your side but not the money you have saved exactly for a situation like it. So, stay prepared.
Have Knowledge about your Cards
Financial institutions and banks can prove to be the biggest hurdle in keeping your finances in order. How? Well the interest rate can make you pay more than what you have to. Moreover, sometimes people only pay the minimum amount on the credit cards which is NOT-AT-ALL suggested.
You should go with paying a little more than the credit card’s minimum to save the interest in the long run and avoid paying hefty interest even if it is just for an extra month. To know the exact facilities, connect with your bank or support executives and ask them about the different pay back schemes.
Make Financial Plans before your 30s
A common mistake made by all is that they start planning a financially secure path when they are in their 30s as they consider their 20s a phase to enjoy. If you think the same, then we must ask you to read this point carefully.
Implementing a plan takes longer than it seems and when you are in your 30s, you are already halfway through. Some might say it is never too late to fulfill your dreams, but we are talking about how to achieve those dreams sooner. Start planning, investing, and regulating your money in your 20s so that you bear the fruits of it in your 30s.
Financial Planning for Retirement
Rather than going out for schemes to help you after your retirement, help yourself.. And that too, now. There are many investment plans and fixed deposits which can help you secure your days after retirement.
It may seem like a far-fetched idea, but you don’t just have to live through your life but enjoy it as well. So, plan in the right direction, plan your future to the farthest day you can imagine and live to your expectations.
Consult A Financial Literate
Financial literates are the experts who can help you manage your finances for you. Having financial literacy would mean knowing the markets, the right investment plans, and making the right plans. This can get hard, especially when your financial stability is touching the ground because of poor tracks.
Many experts can help you to manage your personal finances as well as your finances as an entrepreneur to keep your head high. They can guide you through the hard times to reach your good times.
Financial stability, financial security, financially strong, financially well-background, these are some of the terms people use while talking about their career, business, and the future prospects. Financial planning takes expertise as none of these can be attained overnight.
It makes it crucial to keep your finances in order. To keep your finances in order, and it usually happens with keeping a track of your expenses. You can start with an app where you can record your income and expenses when you begin. But when things start to seem complex, it is better to have a step-by-step guide for handling finances.
Saving yourself from unnecessary spend can also help in attaining financial stability. For example some tax deductions can save your money too. To know more, read that article too.
Written by- Priyanka Rampal
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