I’ve worked with thousands of people over a thirty year career in helping them with their personal financial planning. And I’ve learned that if you’ll take these five basic steps it is far less likely you’ll have a serious financial problem during your life.
Compile a list of short and long-term goals. Things such as vacation plans, purchasing a new house, buying a new car and others that would require you to make a large investment should be included in this list. Think of a variety of different reasons that would affect your life and why financial planning and saving can benefit your life. The better direction and defined goals you have, the easier it will be to meet them.
In your financial journal, place a new entry that identifies all your expenses in one section and all your income in another. Subtract your expenses from your income. What is left is what you have to work with for savings. Determine when you want to have the cash to pay for your next big purchase and plan the savings accordingly.
PHYSICAL – These can be by a mugger, an abuser, a violater or (believe it or not) from over-violent children. It can arise from complete strangers to people who are close to you.
The RBI may continue with its rate hike spree for some more time. “We expect a 50 basis points increase in key interest rates over the next three to six months, which will keep the short-term interest rates firm,” says Ramanathan K, CIO-single manager investments – ING offshore investment. Nowadays, good credit-rated financial instruments maturing in 90 days offer an annualised yield in the range of 8.75% to 9.25%.
Learn to operate on cash-only and your spending mentality will change. You will now fully realize the value of your money and financial planning services you will not be quick to impulse spend. It worked for me, and it can work for you.
If you have ever exchanged currency for a vacation you will be aware of the fact that rates are constantly changing. You may have found that you may, for example, change $100 into another currency planning to travel and then find you do not need it and change it back. You may well have made a profit as in the meantime the exchange rate has changed.
Little things such as making coffee at home and taking a run in the morning help, but you could even downsize on your house or purchase an earth friendly car if you have a gas guzzler. This could also make your car insurance payments decrease by switching to a car with better gas mileage. These things may seem drastic, but can be a great help.