7 Important Things To Know About Financial Planning
You don't want to look at someone whom you worked with and feel that he/she is leading a better retirement life than you are. Well, the chances of this are only possible if you do not plan your retirement at the right age and with the right knowledge.
Here are a few tips that can help you lead a better and happier retirement.
Planning is the key
Financial planning is not just about your finances it's also very much about knowing your own self. Assess all the finances that you may face in the future what are the probable risks that you might tumble on and so forth. Set goals based on time horizons like small term goals are to lower the liability of taxes and the medium-term might include buying a good policy for your child's higher education. All of this is only possible if you know yourself, your investments, and your finances well enough. Therefore, planning out things is very much essential.
Invest to protect
Varun Dua the CEO of the cover fox had once said that protect the two most valuable things that you have in life one your life and second your health then you can invest in making wealth and other things. Therefore buying good health and life insurance is very essential if you invest your money in these things they are sure to benefit you in the long term keeping you healthy and safe. Make smart investments.
Choose the right products to invest in
Before starting to invest one should be totally aware of the loses that they can bare in case their investments turn them down. Being vulnerable to the loses can actually make you invest smartly. Start from choosing something which gives you higher returns in the long terms and does not get affected by the inflammation that easily. Inflammation is one such factor that can actually eat up your returns so keep that in mind.
Save for an emergency
It can rain anytime anywhere the same way an emergency can occur anytime anywhere. Therefore, never underestimate the emergence fund. Have an emergency fund that can easily cover up to 5-6 months of liabilities and can help you lead a normal life. Keep revising this fund from time to time also add to it as your income increases this will work as your hidden treasure.
Be aware of your credit
Credit usage has actually become a really essential part of our lives today but one should make sure to use their credits really crucially. Pay your credit card bills and other pending credits from time to time to avoid any hassle. Being careless with your credit can actually leave you in a lot of debt ruining all your financial plans.
Insurance is looked as an investment
Insurance should no longer be looked at as an investment rather it should be called a risk mitigation tool. One does not invest in the insurance policies they rather secure themselves a better future. Therefore, it is recommended that the investment in buying the policies should be ten times your annual income because in the end its just these policies that can actually save you from drowning.
Revise your plan
Even if you make the best financial plans they might too need some modifications according to the current life events. For example events like divorce, death or accidents may occur any time so one should be able to prioritize their plans and then look at their expenses and investments accordingly. Therefore, revising your retirement plan is a must.
The bottom line
Adil Shetty the CEO of bankbazaar.com believes in the
financial mantra that says “Spend wisely. Protect. Invest”. One should always spend wisely, think about the protection of his/her family and then invest in something that will actually be beneficial.
PTIC provides you with a platform that you can use for planning your financial life. We have facilities not just for retirement plans but also for other insurances like home, or child education all under one roof so all that you have to do is visit the nearest PTIC branch and we are there for your service. Get policies at reasonable prices and enjoy the comfort and the happiness you sees.
