They say money can’t buy happiness, well, from where we’re sitting, it definitely does. We just know that money makes everyone a little happier. After all, we all are looking for ways to conquer our bucket lists and secure a future. And money plays an important role in that process.
On this episode of slice blog, we’ll tell you about financial planning and how it plays a major role in achieving your money related goals efficiently. First of all, let’s talk about financial planning. It’s a continuous process that demands regular attention and efforts when it comes to fulfilling financial needs.
It’s great if you already have a financial plan but if you haven’t started yet, don’t worry, it’s never too late. We’ll help you build a financial plan and guide you on this journey of financial planning.
Set your financial goals
Everybody has different aspirations in life. Someone may see themselves in a lavish house 10 years from now and maybe someone is willing to spend all their money on exploring the world. You decide what you want to do with your income, plan accordingly. It’s natural that your dreams are going to be different and it’s gonna be you who’s gonna make them come true. You should look at your future and focus on what needs to be done financially. Your goals should motivate you and that will help you work on the plan.
To achieve your future goals, you need a strong financial background and by this, we don’t mean have a Ph.D. in finance, just some street skills. For this, you need to plan your finances in an intelligent manner. Get into the habit of reading finance blogs, newspapers and listening to podcasts and Ted talks. Ultimately use this information to make informed decisions about your money because only you can personalize your financial plans.
Keep a track of your money
You have to make sure you are completely aware of your income and expenses. Start tracking the money flow either using a budget tracker or check apps that help you do so.. Sometimes we end up spending more than we earn and that’s unhealthy for the financial plan. When you know where your money is going, it’ll be easier for you to plan for the long term. List out areas that cannot be compromised with money and try to eliminate habits that make you spend without any need. It will act as a catalyst in making your financial plan a success.
This is probably the most important step in your financial plan. It’s up to you to decide what percentage of your earnings you want to save – but a standard number would be 20%. You can save up either beginning of the month when you get paid or have an expense budget set. This step is the heart of your financial plan so make sure to not skip this.
Invest your savings
You’re definitely getting some interest from the bank on your savings but do you know smartly investing those savings can lead to great profits. You have to make wise choices and invest in the right sectors. It might sound like a tedious task that’s meant for the professionals but it can be easily done by beginners. There are so many smartphone apps that help you invest conveniently. You just have to take calculated risks and wait for your turn to flaunt a fancy car. Yes, that’s what a good investment can provide you with and in fact, more.
Plan an emergency fund.
If you want to have a solid, full-proof financial plan, then you must set aside some money for any emergencies. Life is as uncertain as it can get and you never know what’s going to put a dent on your bank balance. It’s essential that you dedicate some funds to an account that will take care of your emergencies. It can cover unexpected health-related issues and any pending debts. Start small and gradually increase your contribution to the emergency fund.
Guys and gals, these were some tips to get you started with your financial plan. We are sure this is a great way to start planning and with time improvise. Experts across the globe promote the inclusion of a financial plan to achieve your special goals. It’s healthy, helpful, and not that hectic. Your money matters and here’s your chance to grow it. You know where to find us if you have any doubts, write below in the comments section!