Managing your capital is hard but crucial. Here are five financial decisions you have to follow at once! Worry not, for these are simple steps for you to read and follow.
1. Save money
Save money and see for yourself. Saving money will ensure you be able to invest for various purposes. Start with putting aside 500 Rupees each month. Over a period of 12 months, you would have 7000 Rupees! Now, if you save 1000 Rupees for five years, you will possess 60000 Rupees! That’s what saving money does to you!
2. Invest money for the future
Now that you’ve got a hang on saving money, think about investing money. Allocate separate funds such as Emergency savings, Child’s college education savings, Retirement Savings and so forth. You don’t know when a sudden crisis such as hospitalization or unemployment might arise so you will need your emergency savings for that. As your little angel turns into a teenager before you even notice, you will realize that you require money for his/her college education, for which you can take money from the funds you’ve allocated for this purpose. As your teen grows into an adult, you’ll realize that you’ve grown older day by day and your retirement days aren’t far away. Your retirement funds will ensure you have a steady income without depending on your son/daughter or anyone else during retirement.
Create and maintain a proper budget. This will assist you to keep your expenditure in check. Spend less than you earn. Reduce your expenditure on redundant items and products. If needed, live a frugal life, but ensure you don’t overspend. Overspending will get you into debt. Debt isn’t a nice thing. Always avert getting into it.
4. Clear your debt
Student loan, home loan, car loan, whatever debt you own has to be cleared at the earliest. The debt will not permit you to sleep peacefully at night. Nor will it allow you to save and invest properly. Debt is nasty so clear it off your list first.
Ensure yourself. Ensure your parents, spouse and children. Ensure your health. Ensure your house and car. Save your family from monetary anguish. Don’t place a financial onus on your family. Insurance will help in times of need.
6. Retirement Plans
Irrespective of your age, you’ll grow older and have to retire at one point. (Read why people forgo retirement planning). You can neither depend on your children or anyone else during that time nor risk borrowing money.
Do not delay these financial decisions any longer. We’ve explained it in a simple way.