If you are good at managing things, you can become your own financial planner. Financial planning usually involves these things –
· Goal setting – The term ‘Goal Setting’ looks very economics text-bookish and dull, but we will make it simple for you. Goal setting involves benchmarking different stages of life such as college, marriage, children’s upbringing, children’s education etc. Once you’ve set these goals, you will know what all you should save for.
· Finding out about investment plans – There’s a plethora of investment schemes that you can put your money in. They range from savings account to mutual funds, precious metals to share market, and insurance policies to fixed deposits! Just calculate the interest that each scheme is offering you. You will arrive at a conclusion soon. Always remember to invest your money in multiple plans rather than investing all your money in a single scheme.
· Work with a budget – Once you have calculated how much amount of money you will be setting aside for investment purposes, you should work up a budget to ensure that your monthly salary meets your family demands, as well as leaves you with enough to deposit it in various schemes. Working with a budget will always keep you in a safe zone. It will ensure that you don’t spend unnecessarily on things that don’t need.
Personal financial planning requires loads of patience and dedication. Always remember to write down your plan and follow it without fail. Even if you falter a little, your entire investment can go in jeopardy. So what are you waiting for? Go, invest!