You might have resolved to start your journey towards financial security this year. You might be looking forward to learning more about financial planning. But let’s first learn how your faulty financial habits can push you off-track.
Here are 5 habits that come in the way of your financial freedom struggle:
1 NOT TRACKING EXPENSES
Where did my salary go?
Well, you would have had an answer to this if you would have kept a record of your expenses. Tracking your expenses helps you curb impulsive buying.
What you can do: Maintain a diary. Record each and every expense you make. At the end of every month, take note of excess spending categories.
2 SPENDING FIRST – INVESTING LATER
Why I have no money left for investing?
You need to reverse this. Spend only after you invest. If you invest as soon as you get your salary, you will force yourself to manage your expenses with the amount left after investing.
What you can do: Invest through SIP* (Systematic Investment Plan) at the beginning of every month. *We at MEGA help you how to balance your expenses with your investments. If you want start your investments or SIP you can Contact us. We would like to remind you that we are the only practicing financial planners in Rajkot.
3 NOT MAKING Goal-BASED PLANS
Why do I fall short of money while fulfilling my dreams?
This problem can painstakingly be overcome by smart Goal-based financial planning. Your Goals can be as small as buying a microwave oven. Similarly, they can be as large as traveling the world. You can invest for all your Goals* through Mutual Funds. *We help you in creating a goal and achieving the same. We are there to support you at each and every stage of your financial life right from cash flow system to create Will. We would like to remind you that we are the only practicing financial planners in Rajkot. Feel free to Contact Us.
What you can do: Make a list of your Goals. Divide them into short-term, medium-term and long-term. Have a separate portfolio for every Goal.
4 PLANNING TAXES IN THE LAST MOMENT
Why do I have to struggle to invest a lump sum amount for saving Taxes?
You can make your Tax planning process easier by starting it early. Ideally, you should begin your Tax planning from the beginning of the financial year. You can divide your Tax Saving investment into 12 parts through SIPs.
What you can do: Start investing in Equity Linked Savings Scheme* (ELSS) from April.*We at MEGA suggest best ELSS schemes; for more information feel free Contact Us.
5 NOT PLANNING FOR EMERGENCIES
Why do emergencies push me away from my Goals?
You would have not faced this question, had you invested for your emergencies. Having an Emergency Fund can help you be financially prepared for uncertainties like inflation, medical emergencies, job loss among other things.
What you can do: Invest regularly in Liquid Funds till you have enough money to pay for six months of expenses. Liquid Funds don’t have a lock-in period. They can be your alternative to your savings account or Fixed Deposit.
Courtesy: Mint date:- 21 January,2019 (UTI Swatantra)