A happy financial life is not limited to making more money or fixing money concerns. It is about careful planning and nurturing. Before you plan, assess where you currently stand money wise, understand every financial aspect of your life, set goals and find ways to reach each of them. Here we compiled a simplified 3-point formula to help you lead a secured and happy financial life.
- Review Overall Financial Profile: Analyze each and every financial dealing like income, savings, expense, liability, assets, debts, etc. Also figure out how much you spend on non-committed expenses like outings, dinner dates, etc. Estimate the areas you can make necessary corrections to maximize savings. Correct the money mistakes you have committed earlier, like clearing your bad debts. If you have parked your savings in the wrong channels, withdraw and figure out the suitable ones that give better returns.
- Identify And Prioritize Financial Goals: Each of us has many money goals in life, like buying a car, a home, vacations, education, retirement, etc. But we usually do not concentrate on priority goals like retirement planning or child’s higher education and rather concentrate on less important or ad-hoc short-term goals. Thus, many times, we fail to asses the right time or the right corpus to fulfill the financial goals. To avoid repercussions or commit big money mistakes, it is necessary to identify and prioritise the goals and follow a plan. Estimate the required corpus to meet every goal after considering the inflation rate.
- Dedicate Saving And Invest In The Right Channels: Make dedicated savings and investments to achieve each goal separately. Investment planning should be made after assessing several factors like inflation rate, liabilities, risk appetite, debts, etc. To get things in place, seek expert advice and have a safe landing.
In simple, financial planning is a process of meeting the goals of life through proper money management. It is crucial to create a personalized/customized financial plan. For expert assistance in this aspect, approach online fiduciary-like ArthaYantra. Our holistic advice covers every aspect of your financial life.