When we look at the success stories of top businessman we get to learn that they all started by managing their personal finance and using it wisely. They dedicated time to do financial planning with regular budgeting.
Here are some five finance tips that you can adopt as soon as you feel some financial stress building up:
- CREATE A BUDGET-start by keeping track of all your personal finances for a month or two. Note down all your expenses, even the smallest ones. After you have done this look for all the places where you could have spent less or which transactions you made where unnecessary. Make a point that you do not note down your wishes, instead set a goal that how much money you need to spend every month and stick with Also, include savings in your budget. After a month of sticking by your budget check yourself again by doing the same process.
- START MAKING INVESTMENTS– familiarize yourself with plans that many banks offer and start investing in them that will help you with your financial planning in the future. You should invest in the retirement plans with the bank you have an account with. Or if your company provides you with one then go for that plan because they will automatically deduct a part from your salary and add it to your saving account.
If you are looking to invest in the stock market, then you should get yourself a financial expert who can help you with this and give you some financial tips. The stock market goes through a lot of ups and downs so you should invest wisely. Kotak gives you a wide range of investment options like Mutual Funds, Demat Account, Kotak ASBA Facility etc.
- SAVINGS– you should start saving at an early age, and when it comes to the habit, it proves to be useful in future. Make an emergency account for situations like if you are out of your job or a disaster strikes you have some money in your hand and you can re-establish yourself. Planning for your retirement should also be on your mind. you can make investments in fixed deposits that will earn you profits in the form of interests. When you reach the age of 45-50, you should make saving as your priority. You can also you the retirement calculator available with Kotak, to make choices and decisions wisely.
- DEBTS– Debts can land you in big trouble, and they stand in the way of your financial goals and budgets. You should make a plan and calculate how much EMI you will have to make each month. Make small payments for each debt and eventually clear out all your Once you get rid of them make sure that you stay out of debt for a long period of time. You should stop using a credit card as they are form of debt only. When you are able to do so, you will be able to save money and add them to your emergency accounts and retirement plans. To kick-start, your debt paying plans you can arrange for extra funds by selling unwanted items and look how to improve your expenses and budget.
- GET YOURSELF AN EXPERT– Since, we are hardly given any good financial education you should never be afraid to look for help and advice from a financial expert. If you have no idea about financial planning, you have no idea from where to start or have a fear to make decisions by yourself, or if you are in financial trouble, you should seek some help. A good advisor will tell you about the pros and cons of each investment plan and will help you choose and take steps so according to your lifestyle that will build you a secure future.
Lastly, you can start of all this by setting yourself goals both long term and short term and prioritize them for a stable future. Constant ups and downs in your financial plans will make you even more strong and determined toward your finance.