Financial Planning  for  Youth- A few tips

08-03-2019

 

Youth- both men and women- just after landing on cushy and lucrative jobs soon after finishing years of study in schools and colleges , will be in a mood to celebrate the occasion. May be the first two months you can enjoy on things for which you were craving for-like an entertainment, pleasure trips with family and friends, throwing parties etc., But then it is time to sit calmly and plan for a concrete financial  security to take care of your future. Here are the few tips :

  • Jot down all your commitments on expenditure like education loans, self and family commitments, maintenance, Taxes etc.,
  • Prepare a Financial budget including all expenditures carefully with a proviso for contingencies.
  • Then plan for prudent Investments in allocation for acquiring assets-physical, tangent and financial assets.
  • Investments should start with medical, life and asset insurance policies for you and family members.
  • This apart, Life Insurance under Term Policy for ten times of your monthly salary be taken and the premium is quite small and this will give financial security to the family in unforeseen circumstances.  Avail the Tax benefits.
  • An investment in Housing, a small percentage of investment in Gold, Debt instruments, Shares of top companies (Nifty/BSE 30), Mutual Fund- SIP are also recommended.
  • Always pay attention to Safety, Liquidity and ROI while planning for investments.
  • Always anticipate future commitments and expenditures like for marriage, children etc., and invest with specific amount for each to take care of them on a medium and long term basis.
  • Monitor your spending habits and accordingly plan to keep them under control
  • Credit cards are like landmines- so be cautious to pay them on date without penalty.
  • Work out your tax commitments and Pay taxes on time by diarizing them in advance.
  • If you plan well you can enjoy the fruits of your hard work and lead a stress-free life!

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