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10 Steps For Your Secured Financial Future

What are the steps towards financial freedon

10 Steps For Your Secured Financial Future

Those who are aware of personal financial planning always use to make plans with the best of intentions and are most determined to follow through with them. 

I’m sure that this year is also the same. Most of these sights are related to leading a more organised and happier life. They could be related to quitting a bad habit like smoking, drinking or eating junk, or a positive one like beginning an physical exercise or minimising the excess use of cell phone!

I have consistently noticed that people’s planning every year mostly revolve around physical health and mental well-being. Despite the vital role money plays in our lives, it’s surprising that examining and planning one’s finances never gets listed. To create a happier and secured future, there must be a healthy combination of all these.

Here’s I am sharing my views how you can reach your goal of a happier, wealthier and more secure tomorrow.

Maintain budget for savings rather than budget for expense: This will ensure that you not only save but can also satisfy yourself. Set minimum savings target of 15-20% of your annual income.

Financial goals must be defined: Make your goals guide you and motivate you and never ever replace them with anything else.

Build wealth in pyramid shape: Build a solid base of savings and liquid investments, followed by family security with life insurance and health insurance. Then comes your investment portfolio consisting of equity and debt and finally, alternative investments including real estate, gold, silver, jewellery etc.

Avoid bad vision while planning your taxes: Consider monthly tax saving through ELSS mutual funds as it will help you save tax and generate a huge corpus of wealth over a long period of time.

Make definite and informed choices: With every new article, magazine, news you read this year, understand how the new information will affect your overall financial situation before making any money related decisions.

Be smart while opting loans: Learn to identify good and bad loans. Good loans include home loans (which are long-term in nature) because the investment rate of return will always be higher than the interest you pay. Bad loans include personal loan and credit card loans because they are very much expensive due to higher interest rates charged by banks.

Health first and buy the right Insurance: Comfort your body and remain relaxed whenever your body asks for. Make the right choices with respect to insurance. Get adequate life insurance for full time horizon or go with whole life insurance plans and health insurance for protecting family as well as attack on your pocket under medical emergencies.

Never let your emotions be a barrier! Understand your exact behavioural biases to avoid expensive mistakes.

Talk with your children about Money: No MBA courses in India  teaches the true management of your finances across the globe. Financial teaching can be the best gift you can give to your children. Start with the simple concepts at a young age, before allowing them to face their own bank, bank account and bank related work as they grow older.

Will Creation: Protect your upcoming generations and ensure that your property and wealth is distributed as per your wishes to avoid future disputes and court cases in your family.

And last but not the least...

Happy Life = Physical Health + Financial Health + Mental Health + Family Health. 

With these points in your mind, you can manipulate your future as per your requirement. And always remember that the real value lies in following your plan to achieve your desired results and goals.


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