On the occasion of World Financial Planning Day, let us tell you what mistakes should be avoided in financial planning. If you do your financial planning properly then you will easily achieve the financial goal.
Today ( 4 October ), is World Financial Planning Day. This date reminds us that all of us must do financial planning in time to remain financially independent. Anyway, after the Corona epidemic, everyone has understood the importance of correct financial planning. After that, the financial planning walls have increased rapidly. Now the question arises that everyone is investing to make their need and future surreal, but they are unable to succeed fully in it. After all, where is the mistake happening? Come, on the occasion of World Financial Planning Day, we tell you what mistakes should be avoided in financial planning. If you do this, you will not only become financially strong but also become money-rich.
1. Do not forget to create an emergency fund
The coronavirus epidemic has told all of us that a bad phase in life can come time. It is necessary to prepare for that in advance. What is already prepared for the bad times goes beyond the crisis. Therefore, make an emergency fund for six months of your monthly income in financial planning. It will work to support you in bad times.
2. Negligence in taking health insurance
Treatment costs have become quite expensive over time. In such a situation, health insurance has become very important. If you have not taken health insurance yet, do not be late now. This is a big mistake. Along with this, take the term environment. They are important for the safety of the family. Also at least try to get a loan. Even if you take a loan, try to repay it soon.
3. Don’t forget to set your goal
Before financial planning, it is more important that you set your financial goal. Set a goal You can miss your goal by investing. This is because many needs come into our lives. It is right to invest in advance for large expenses like children’s studies, weddings, houses etc. To get the right financial planning, decide the price of these big expenses and then invest accordingly. Keep reviewing the investment periodically to see if your planning is correct and whether you are getting better returns to get around on investment.
4. Make a budget for income and spending
Make a budget of income and expenses every month by yourself. Creating a budget will help you manage your expenses. Also, you will get help in preventing wasteful expenses and the habit of saving will be removed. When making a budget, keep in mind that the budget is real. There should be a budget balance so that the needs of the house can be met and future savings can also be easily done.
5. Learn where to get more return on investment
Take special care of one thing in financial planning, from where you are going to invest, you get great returns. If you have a savings account and you are leaving money in it in the choice that you will get a return from interest then do not do so. The savings account gets a return of 2 to three per cent while inflation is around 6 per cent. That is, you are being rejected by the return. Try to avoid it all possible. Invest in such investment mediums by removing idle money from which there is more return. Also, try to save tax.
6. Do not compromise retirement planning
Investors are generally seen to have done all kinds of planning except retirement planning. You never make this mistake. Financial planning has an important role in retirement planning. You should be retiring from your first job and start investing in it. After retirement, you should spend the amount of money you need to live in the planning time. This not only keeps your future safe but you also get more return on less investment when you start planning early.
