Growing old, heading to the age of 30s, finished studies now the stage of hustle i.e., career arrives. For life’s survival, there are many aspects but among them, the most important one is the financial aspect. A career is important but to deal with an emergency or a risky situation you have to save money. Saving money is important for that you had to first learn how to make proper financial planning. Investing is important now and then but don’t be empty-handed in the crisis time.
Investment or financial planning needs proper guidance. Some agents sell their policies but beware of the fake agents. As most of the schemes result in the loss while benefitting the agents. Find a certified and verified agency that will ensure providing security and safety of your money.
- Watch your pocket
Evaluate your monthly income and expenditures. Balancing between the both is important. Heading out try to avoid the unnecessary expenses. This is a crucial aspect of budget planning as well as financial planning. Try to reduce your expenses whenever possible.
- Little investment
No matter how luxurious a life you live but it takes one movement to turn your life upside down. Start by investing a little in other investment schemes such as life and health insurance. Suppose you are earning 20000rs contribute 10% of your income to insurance schemes, 10% to savings, or medical emergencies. Keep aside the rest of the money for expenses. Try to save as much as possible as it will help you in the future.
- Be practical about your financial situation
As the new month arrives there is a wait for the paycheck. Be practical about what you do with your salary. Sometimes there is also the situation of the loan that has to be paid off every month. The loan can be varied from education loan, student loan, and home loan. The interest of this loan increases as time passes. So, you had to keep track of the loan that has to be paid timely. Try to maintain a diary and note every little penny you spent and cross-check your account.
- Increase awareness about the scheme
When applying for a loan or a saving scheme. Scroll through various banks compare their interest rates and various other factors then start the process. The bank will look for the other documents while finally processing the loan. This will also help to know about your financial status. Talk to your friends and family for advice.
Applying for a loan is good as you want something but do not empty your savings for buying expensive. Make a list of the loan that has to be paid from the highest to lowest. Start by repaying a little on every loan. Try to repay the lowest loan as early as possible.
- Focus on stable assets
As you are growing invest in immovable property such as land, house, jewelry, or flat. As the old saying goes “Old is gold”. More old the property the more expensive it will be after 20 to 30 years. Its value increases with time. So, whenever you will face a crisis the solution will come in handy.
Investing for your retirement is important as you do not know what the future has in its hand for you. First, try to figure out the position in which you are. Then analyze the pros and cons of your investment. As somethings can be learned as time passes. Invest little amount to be in safe hands as it is very risky for a big investment. The result can be more or less in favor.
- Know about the Credit Card
A credit card is proof of the eligibility of asking for a loan from the bank. In metro cities, you might encounter people in malls asking to apply for a credit card. A credit card is simply an ATM card or Debit card with a limit to amount set based on your salary. Credit card is used in places like shopping malls, petrol pumps, or any restaurants. If you do not have any cash in hand the credit card can be used to obtain cash from a particular bank. This cash is given for a limited time. Do not forget to refill the credit card every month whenever your salary arrives.
For example, In case you are buying an expensive item and are short of a certain amount. You do not have to touch your savings. You can take credit amount from the bank and can repay it within a month.
Financial planning is very important as the whole life is depended on what you earn and how to spend your income. Do not burden yourself with debts as the more the debts the more time it will take you to recover from their effects. Do the things that fit in your pocket and are budget-friendly. So, try to invest smartly that can help you in the future.