Having money and don’t know what to do with it can be really hazardous. Thereby, here are some of the tips and tricks one can utilise and take utmost advantage of them.
1. Review previous year expenditure
Make a report of your previous year check where you spending more and where cut down is a must and in which sector can you can make more investments. This review will help you make a better plan for the upcoming year.
2. Shape a Budget
Budgeting is a basic plan to know whereabouts your money and is aware of your financial equation. Budgeting lets you know about the excess outflow and how can you limit it.
3. Pay yourself first
Make it a thumb rule to keep aside money from your income for savings and then think of expenses. These savings can be used as investments or plans like retirement.
4. Save for emergency fund
Happy days and sad days go hand in hand. Hence, the financial plan should be designed in such a way that you have funds even when you are at your worst like falling sick or losing a job. Calculate how much short are you for your financial emergency and plan accordingly to reach a safe level.
5. Curb your debt
Most of the times it happens that one goes in heavy debt due to lack of awareness of investments or temptation of enhancing living habits. But sometimes, we overkill our budget and start seeking loans with a foresight to pay with future income source. Liabilities increases and decreases future savings grant. Make a resolution to avoid such liabilities and live burden free from debt. If your debt has been high previously, make plans to lower it in the coming year.
6. Have competent protection
Have adequate protection plan for your family. It is essential to diagnose how is it required to protect your family and plan accordingly with right investments and plans. Refer what are the perfect insurance plans for your family and don’t mix insurance with investments.
7. Postulate goals
Having goals in life is important. Goals like buying house, car, building your own enterprise, education plans for kids, retirement plans are important. Don’t build goals in aspiration of peer pressure. Sometimes not maintaining financials for those goals makes them unachievable. Thereby, it is important to set appropriate goals keeping resources in mind.
8. Be financially literate
The most important factor of being financially safe is to be literate. Every time a decision is to be made, one should R and D about it. Have complete information about the decision you are going to make, its pros and cons from newspapers, experts on an online forum, blogs, and websites.
9. Keep up proper records
Keep your family updated with the financial assets you have so that there be no hindrance during an emergency and your family doesn’t stay baffled. Keep your family well informed and updated so the information can be tracked easily at the time of need.
10. Stay healthy
One should stay fit healthy irrespective of the load one faces in the career. To have work-life balance has become critical. Healthy life not only reduces stress but also chances of illness.
Following these pointers will not only help you financially but will give a better future making these variations at the starting of a new year is always beneficial.