Always consider income minus savings or investment as first priority and the remaining to be expenses. By thinking this way, you will only guarantee a safe & secure financial plan for yourself and your family.
Gain financial education to make intelligent financial decisions
Financial Education is a must as it can help you overcome much of the difficult situations that you might undergo in the future with less bothering of your finances. Proper financial planning comes only through financial education and understanding.
Invest early and save regularly in good financial products
Investing early and saving regularly in your financial products can help you to achieve your goal. Investing based on the risk to reward ratio and the amount of risk that you are willing to take would be the right way to start your investment in a product.
Check your accounts statements regularly
Checking your account statements can help you in your planning and also during revising your plans when the need arises for you to know how much cash inflow/outflow has taken place in your account and how much you could optimize on making them more efficient.
I have an adequate amount of term plan as my family is dependent on me
You need to make sure that you and your family are covered sufficiently under medical insurance to ensure that you or your family gets enough funds to help you or your family sustain under certain unforeseen circumstances.
Spend money considering your financial goals and present expenses
It is always easy to think and say but difficult to act. But if this is put into action, most of those tasks in your financial plan will fall in place.
I avoid buying too many credit cards and make limited use of my credit cards
Credit cards can make your finances look difficult to manage if not taken care of them cautiously. Try your best to avoid them; if not make sure you pay your debts on time.
Project your income and expenses for the next 1 year and track changes
It is not only good to have a financial plan and follow it. You must also look at revising your plans based upon the new changes in your life, be it marriage, a new member in the house or say you’re planning to take a home loan for a new house. Make sure that your financial plans reflect your financial goals for the future.
I store all my financial documents safely & have informed my family about the same.
All your documents need to be organized and kept in a safe closet so that you know where to access them and also inform your family for the fact that they know where they are in case of your absence.