Financial planning is one of the most important aspects of your life and it is important for you to plan your finances in order to ensure financial success and have a stress free life. Personal financial planning involves various aspects that you have to consider in order to have a smooth financial life. These aspects include budget making, investing, saving, planning for your retirement, buying adequate insurance coverage, etc.
You must follow a few personal finance tips in order to ensure a healthy functioning of your finances. These tips are as follows.
1. Spending less than your earnings: It is important for you not to spend more than what you earn or more than what you can afford. Buy things that you need and not things that you would never even use. Try to cut costs in various areas so that you can save for difficult times. You do not need to make very big sacrifices; a little effort from your part can do wonders.
2. Formulating a budget: Make a budget for yourself that you must follow. Include all your expenses in the budget and subtract the total expenses from the total income that you get. What is left behind is the amount of money that you will be using to pay your debts. Making a budget helps you understand where you are spending your money. You get a clear picture of your financial situation and can decide how to plan your finances accordingly.
3. Insuring yourself adequately: Buying insurance is a very important part of financial planning. Insurance protects you financially from any unforeseen situation. Thus, it is essential to get adequately insured. Having life insurance is something that must be a part of your financial planning as you must protect those who are depending on your income.
4. Contributing towards a retirement plan: You must save for your retirement while you are still earning. This is because once you retire your income will be gone but your expenses will continue to rise. So find out from your employer if they are offering a 401(k) plan. If they are, then you must start contributing as much as you can towards it. In case your employer does not offer such plans you can consider alternative measures such as IRAs. If you are already contributing towards a retirement plan, then try and contribute a little more.
These are a few tips that can help you in leading a debt free and comfortable life. You must follow them to make sure that your finances are always in order.
Recently there has been increase in awareness for such things. Nice to see an informative article over this topic. Will be great if we have a income tax saving tips (section wise like 80C, etc) article.
Thanks
A financial planning mistake that needs to be avoided is keep our retirement savings safe. Failing to do so is probably one of the biggest financial planning mistakes.
sometimes a lack planning will not be in accordance with our expectations, thanks for your tips it's very helpful and useful for me
on my retirement, i want to be so ready for that day. good article
For point 3, once you buy the insurance policy, read the policy document carefully. It should mention all the details of the policy. Visit this link for more info: http://policycomplaints.com/is-it-insurance-compa…
All tisp are good enough but in my opinion spending less than earning is the best solution to manage finance .
We have heard it many times before that the key to become rich is – Spend less than you earn. This is great advise and you should follow this without any hesitation.
But I am agree with Ranjan that sometime spending less doesn’t seem much Fun and one should search new ways to earn more money.
1. The simplest way to increase earning would be to Ask For a Pay Raise. According to the Pareto principle, 80% of the tasks you are doing on your work bring only 20% result and other 20% tasks bring 80% result. Concentrate on 20% tasks that are important and do them in the best way possible for next three months and then ask for a Pay Raise.
Note : Before asking Pay raise, you should improve your working skills. By improving your skills and becoming a better person you would definitely get a pay raise. In case your employer refuses to you more, someone other would certainly pay you more for your skills.
2. Start A Part-Time Business – This is the best advice, I can give you, Start a Part-time business. Here are few ideas – Creating website, Blogging, Computer repairing, Home painting, Gardening, Dogs training, teaching language and computer skills.
There are many ways to earn more money and invest it wisely. He Who Searches Finds…..
For more information :- http://www.readtoawake.com/
These ar every useful tips. As a responsible person, one should read these kind of articles and gain some knowledge about personal finance before approaching for any investing. Otherwise there are people who know how to take advantage of such situations. At the end of the its your money.
sometimes a lack planning will not be in accordance with our expectations, thanks for your tips it's very helpful and useful for me