Basic Personal Financial Planning
July 07, 2023
DD Planet
Personal financial planning is very important to decide on how you should allocate the money in your budgeting and eventually meet your short-term and long-term targets.
Here are quick tips and advice to help you plan your personal finances:
- Define your goals, both for the long-term (such as retirement fund, your own house, children’s education and so on) as well short-term, like buying a car.
- Assess what you have and what you need.
- Budget your household expenses and know your savings. For details, read 'Making and balancing a household budget'.
- Create an emergency fund and funds for annual expenses.
- Formulate an investment strategy after analysing the returns and prevailing interest rates of various products available in the market.
- Learn taxation and make sure you pay the least tax on your investments.
- Make investing and paying your bills on time a habit. Save smart. Learn discipline.
- Keep your credit score high by paying your loan on time and keep your debt at the minimum.
- Track your expenses from time to time and make amendments such as using a shared cab, if things are going out of your hands.
- Buy a basic health insurance cover.
- Create a financial schedule for yourself and follow it rigorously.
- Track your financial health from time to time. Read ‘Personal finance analysis’.
- Get your knowledge enriched by reading stuff like ‘Investing for wealth’.
- For detailed personal finance planning, books like ‘Sack Me If You Wish’ by Devinder Dhingra may be of help to you.
