Financial planning how much important for your life
Financial planning how much important for your life why I choose this content because this is the most important factor of every individual and cooperates so I thought I want to share something about this with you all. Financial planning is a major part of life most Indian families didn’t do that this is the major mistake doing most of the peoples. After retirement most of the people struggle in their life why this is happening, what is the solution for that this is what I’m going to share with you in this blog. Purchasing power depends on your income but most of them purchasing more than their income so debt is created automatically so financial planning can’t do them. This is the mistake doing 75% of families so here debt is the major challenging factor because most of the middle class and lower-middle-class people doing this same mistake and this repeating all the time. So they didn't think about financial planning. Financial planning is a necessary thing but most of them can't understand that. Financial planning controlling future uncertainties so try to build your financial level. How can save your money how to plan your financial life I will share with you one by one.
Savings how important for your financial life.
Savings is the most important part of financial life but most people didn’t understand this concept. The monthly income spending for the day-to-day expenses so the saving it’s not happening here. debts are automatically coming into your life you have to pay that liability so most of the people’s financial life is starting with liability. Why this is happening? First of all, you have to save your money from your monthly income you should save at least 30% of your income that saving you have to consider as your First E M I, balance amount you have to spend for your day-to-day expenses. This method is the basic thing of your financial planning.
Protection for your life
Protection is the major important part of financial planning you should take some kind of insurance policy like Health insurance, term insurances, fire insurances, etc. you should take a health insurance policy that’s most important for your life you can control future uncertainties from that. Term insurances and fire insurances are also important for your future you should take some kind of insurance policies this is you have to keep it in your mind.
Avoid your maximum Liabilities
You have to avoid maximum liabilities then only you can build healthy financial life. Liability is the major problem of maximum middle-class people they have types of debts like EMI, Personal loans, educational loans, etc. these debts are the major problem of maximum people but they didn’t try to come out from there they can’t come out from there why this is happening I will tell you some key points for that.
- Unwanted expenses
- Personal loans
- Credit card
- E M I
This kind of expense is the major problem of most middle-class peoples so try to control your expenses and try to save your money.
Investment how to play a major role in your financial life
Investment playing a major role in your financial life this is the major important part of financial planning here you have to understand the difference between savings and investments. Investments can divide into 2 types short term funds and long-term funds short-term funds like liquid funds, bank FD, Recurring deposits. that’s will not grow you financially and that’s not beat inflation in the future but in the case of investment give you a higher return in the future and you can enjoy your investment in your retirement period. Here investment schemes have many types you can choose your best like Mutual fund schemes, stock markets, types of schemes have in mutual fund these of investment plans will grow your investments you will get more return from there.
Risks of financial planning
Here have some risk factors you have to overcome that then only you can build a healthy financial future. Risk is the default thing you can’t avoid that purely but you can control your risks. That requires some financial knowledge so you have to improve your financial knowledge then you can control your financial risks in the future.
conclusion
Financial planning is important for all individuals and corporates so you have to keep in your mind 3 things first you have to save a certain percentage of income second thing control liabilities, third important thing Is investment. These three things you have to follow in your life then you Can build a healthy financial future. I hope this content you understand well.
I hope this blog will give you 100% satisfaction
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