Here we would get to know how we can plan our funds or finances or money simply and wisely in our day to day lives. Any person needs money to survive but how that money needs to be spent or saved. Anything needs proper management if we want optium benefits from that. So here we will look into a few day to day routine behaviors or activities through which we can save money and use it on better and necessary things. Financial planning is necessary not only for a person, himself but for his family too. As anyone can fall sick, need a doctor, education purpose, future uncertainties etc. Money is your best friend in the time of need, nobody would come and help you financially but only your own savings, assets, investments would help you in the time of crisis. So, now we will start explaining with the help of a few points that how a person can manage his or her finances in their normal routine life.
- Manage your Debt wisely: Lack of debt-management may eat up a major part of your paycheck. You may end up borrowing fresh loans just to pay off older loans. If it gets out of your control, then you might fall in a vicious debt-trap. So starting from credit card bills, I would suggest you to pay-off your credit card bill as soon as your salary gets credited as it is the highest or most expensive form of debt. Start using your credit card only in emergencies else don’t touch it even else you may fall into a debt trap . I can’t say not to own a credit card because it helps you in getting funds in case of emergencies and when the bank is ready to give you funds why will you go to some relative or friend to ask for help? But use it really wisely.
- Get your risks covered- You need to realize that your life and property/assets are vulnerable to risks. These risks can anytime lead to loss of income and put you and your dependents in a financial crisis. So start investing in Life insurance plans, take medical insurance too as it is not a waste of money but in case of medical emergency it will pay off all your expenses and that is the most important thing in life that you get the financial help in the time of crisis.
- Planning your Estate: Agree to it or not each one of us has an estate or asset, whether it’s your vehicle i.e. car, scooty or your home, the cash lying in your saving account and current account, every asset constitutes an estate. It’s your responsibility to decide what will happen to these after, you leave this world. You need to ensure that the right asset is given to the appropriate individual in the right manner. Ultimately, you need to think about estate planning as well as you need to purchase some for future reference as you might sell them on case of emergency. Though purchasing any estate or asset is not really easy as it require funds but you need to save every now and then so that you can invest a bigger amount in your property, you must be knowing about time value of money, so as the time will pass the value of estate too will increase.
- Planning your Taxes- Planning of your taxes or really important as you can save your money from ITR also.There are so many exemptions given to the people under different sections of Income Tax. For example if you have a LIC policy or you have NSC in post office you will get certain exemptions by which you can save your income as well as that would be an investment too.
If you do not have an idea where to start from, then take advice from some reliable source. You can also invest in Mutual-Funds to get the benefit of diversification and professional fund management. Investing in Mutual-Funds is made paperless and hassle free now.so keep all these points in mind you might never fail in financial planning. Pay your bills of credit card on time, get some insurance policies, start investing in some real estate, plan your income tax returns etc would for sure help you to get your money saved or invested so that it can give you better returns in the time of need.
Founder & CEO| Fox Investor & A.V.A. Taxway Associates- Corporate & Tax Law Firm
Viibhor Agarwal is a Business & Brand Consultant as well as he is a Financial Expert his area of specialization is to guide Entrepreneur, Start-up’s and SME’s to build the brand value of business financially & legally. He has 8 year extensive experience in this sector