blog Personal Finance | 2min Read
Published on April 13, 2022
Financial Planning helps you fulfill all your dreams and goals in a systematic and planned manner. Managing your money need not be boring. It’s not rocket science and you need not be an adult with a financial background. You only need to show a bit of commitment!
Q. I’m still a student, am I not too young?
A. You need to start practicing now so that you can manage it better when you grow up.
Q. I have no income!
A. Pocket Money, money gifted to you, borrowed from parents, internship stipends, earning from house chores – these are all sources of income.
Q. How will this help me?
A. Don’t you want to earn more? Retire rich & early? Live comfortably? Make your dreams come true? If yes, then Financial planning is the way.
Now that you know the WHY, Let’s move on to the HOW!
1. Planning the MANTRA to success!
All of us have dreams. But how many achieve theirs?
First step in realizing any dream, financial or otherwise is to put it in writing—i.e., to set a goal. Dreams should be translated into SMART goals if they are to be realized. SMART goal is
Tip From Mentor: Spend on – Needs first! Wants later! Waste Never!
2. Planning the MANTRA to success!
A well-crafted budget can help you identify areas where you are spending unnecessarily. You can thus further reduce your expenses, improve savings, build assets and thus meet your goals/dreams faster.
- Track/ record your money on apps like Spending tracker, Goodbudget App, or Excel sheet
- Trim all the extra/unnecessary expenses
Envelope Budgeting – A certain amount of money is set aside (allocated) for a specific purpose or category, in an envelope marked for that purpose.
3. The Savings Mantra Start NOW! Save First! Save Regularly!
Time is Money’ and certainly so. The surest way to save is to make ‘saving’ your first and most important expense. There is no better time to start saving than NOW.
If you do not have a savings account, open one NOW! Keep your savings in a saving account instead of storing at home in a piggy bank. It’s not only safe but also gives an annual interest. Thus, making your money grow.
4. The Savings Mantra Start NOW! Save First! Save Regularly!
The investment allows you to build wealth by making your money earn steady returns and grow over a period of time. You don’t need a significant amount, you can start with an amount as low as Rs 50. per month. Start with low-risk channels like Bank Deposits, Post office deposits, Bonds & Debt Funds. If you start investing today, you cannot imagine the amount of wealth you would build by investing for 40 years. Time will be on your side.
Proper Financial Planning will help you achieve financial freedom, where you would no longer need to work for money, instead, your money would work for you.