10 Steps for a successful Financial planning for success.
A financial planning with budgeting is a must for every investor who has surplus money and more so for HNIs. A Budget tells you where your money should go instead of wondering where it went. This gives a control over our finances and ensure that our money is safe, liquid and profitably invested.
The following essential steps would serve as a checklist to have a proper evaluation of our investments from time to time.
- Make a list of all assets and Liabilities and take a stock.
- Add up all sources of income and list down all expenses- fixed and variable . This is the first step for Budgeting
- Specify your goals, wants and desires and provide for each
- Track your expenses –big or small – budget it and avoid credit card dues
- Specify needs and wants of all family members, discuss and crystallize all
- Automate your Savings like LIC, MF SIP, Bank RD etc., every month
- Provide for exigencies/contingencies –medical, legal, travel etc.,
- Prioritise your Debts- High interest-low rates, pay the first early. Ensure you maintain a good Credit Score to borrow in case of emergency.
- Save with tax benefits like ELSS, MFs, Insurance etc., and with good ROI
- Stay committed to the budget and plan and spend strictly as per plan.
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