Starting as an independent individual, what you need first is a plan for your finances. That feeling of financial independence is surreal and might be overwhelming when you throw a party. Half of the month is left, and you do not have the money to survive?. How? Why did this happen? You may have gone overboard with your expenses this time. So how do you resolve this?
Financial planning is your answer. It will not only balance your spendings but might help you save a little more than expected for that rainy day.
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Let’s understand some basics of financial planning that are easily doable and help you save money.
Start Now
It’s never too early to do your financial planning. If you start today and continue for years, you might have double the amount you thought than if you had begun ten years later.
Save
Each brick counts when building a home. Even if you have to save up Rs20 for that soda, it will be a part of your saving. A well-known concept called ‘Avacado Toast’ shows how saving small amounts can help you buy a house.
Make a Budget
Making a budget is crucial when you want to meet your financial goals. Monitor your expenses, creatively challenge yourself to make yourself stick to that budget you planned.
Also read: 15 Budgeting Hacks That Can Change Your Life
Control Debt
Once you start your independent journey with finances, banks are more willing to give loans and credit cards. While borrowing money is not bad, keeping it in check is essential, so your savings are not disturbed.
Buy Insurance
Be it car, accidental, life, or health insurance, it should be the top of your priority as it’s a great way to begin financial planning. With special offers from insurers and thorough research, you can buy the best for you and your family.
Fixed Deposits
The most often used option for saving a lump sum amount of money at once for higher interest on savings.
Also read: Investing vs. Saving: Which Should You Do, When, And How?
Public Provident Fund
Since it is a government scheme, this one counts as a safe option. It has a lock-in period of 15 years but with a guarantee of return in investment from the government.
National Pension Scheme
NPS is a combination of various investment schemes like Liquid Funds, Fixed Deposits, and Corporate Bonds. The motive behind this was to encourage them to save more post their retirement, and since it is under government, it is trustful to invest in.
Make a Will
To secure your loved ones’ future, making a will is the best option. Spare some time with a trusted attorney and write a choice that is according to your wishes.
National Savings Certificates
Majorly for small and mid-income investors, this is a government scheme as well. A savings bond that motivates investors to invest while saving money on tax can start with an investment of just Rs100 and increase it when they feel feasible.
Financial planning is the first step in wealth management. Therefore if you are in your 20s, now is the time to invest your time in it and save money for the future.
(Check out 'Learn & Grow with Wizely' 'to read and learn all about personal finance and financial planning.)
