Sonal, a young, well-educated and an earning woman, began to deal with her finances on her own. But she was unsure whether she was doing the right thing with her money. She knew that she is not very well versed with finances and wanted an expert guidance. It was then that she approached an online advisory on personal finance, to help her to not just plan current finances but also guide her with long-term investment strategies to secure financial future.
Here is the basic guide to financial planning that she followed as a beginner. These basic tips help every beginner who wishes to have a financial plan in place.
- Don’t hesitate to get started. The first thing to do is to simply start. If you have made mistakes, be alert and quick at recovering. It’s better to start with something than to sit back doing nothing. Eventually, you will find the best choices that provide maximize savings and returns.
- Begin with what you have. Time is one-thing that you can never buy back. So, don’t wait until you get a higher pay check. Start with the small amount you have in hand. The power of compounding will help you accumulate unbelievably larger corpus even with your little savings or investments over the time. You would require a huge corpus to achieve important life goals like purchasing the house of your dreams, commencing the start-up you have visualised or planning for your child’s education. The good news is that anyone can accumulate corpus by planning smartly at the right time with a well thought out goal-based investment plan.
This is where Unit Linked Insurance Plans (ULIPs) come into the picture. They offer you the chance to achieve your life goals by providing a combined benefit of life cover and investment. Thus, the premiums invested in a ULIP policy have dual objectives. The first is life cover, which provides financial security to the family in case of the unfortunate demise of the policyholder. The second is investment, where your money earns market-linked returns and on completion of the policy term, a lump sum amount known as Maturity Benefit is paid. It not only inculcates disciplined investment habit, but also allows investors to explore the power of compounding and take advantage of market growth and invest strategically to meet life goals.
- Draw your route to reach your destination. Determine your destination and proceed towards it with a plan. Figure out what you want to be and where you want to reach in next 5 or 10 years so that your focus does not shift away from the target and you do not deviate towards uncommitted or unnecessary expenses.
- Identify and prioritize your financial goals. Succeed in life by planning well-ahead, for all your financial needs. Jot down all your future money goals and prioritize them. Also, categorize all your financial goals as short-term goals, medium-term goals, or long-term goals. Calculate future costs to achieve every financial goal and plan separately.
- Create a budget and move accordingly. It is highly important to stick to a budget to avoid overspending. Simply saving may not help in reaching all the goals. It is imperative to make wise investment choices to let your savings grow with time to beat inflation.
In conclusion, it may be confusing or tough when making a financial plan for the first time. But, it is imperative to take the first steps with dare and devotion. Starting with a little will help you big time in the long run.
Get the right advice at the right time and do the right things with your hard-earned money. Grow your wealth with a new age ULIP plan Edelweiss Tokio Life- Wealth Plus.