Finance in India
Financial planning is one of the most important aspects of our lives. In these times of economic uncertainties if you can plan to save and invest your savings wisely, you would have a good amount of money for yourself when you retire. However, many people find it very difficult to comprehend the language of finance and business and end up paying a hefty amount to consultants to provide them with this valuable information.
In order to make things easy for you to understand matters relating to finances like mutual funds, market, insurance, credit cards, investment, pension, banks, loans, taxes, etc., we have attributed several pages that will help you to to understand these concepts and help you to plan your future as far as finances are concerned. This kind of knowledge is needed not just for entrepreneurs and businessmen, it is also required for salaried people who need to keep aside a fixed sum that should be saved in the long term.
Goal Setting: Setting long term and short term goals for the future is very important. People usually do this kind of planning for their career but do not plan anything related to their finances. In fact the two go hand in hand. When you get a better paying job, apart thinking of the benefits, you should also think of how to make your savings swell too. Prioritizing goals is very important for people of all age groups, especially young college graduates when they start working. The thrill of earning is so great that most of them do not care to save. However, the recent recession in the IT industry has taught us all an important lesson that you should not forget; you must be prepared to face a financial crises at any point of time in life and should save well for that.
Planning for the future is not easy as you might be confronted with conflicts at every stage in life. In such case, you would have to make some difficult decisions and take the solution that you think will help or your family you in the future. Weigh the pros and cons of your decisions very carefully and never become impulsive when you decide on matters relating to your finances or investment. Do not forget to include the interest of family members when you plan or prioritize your finance and budget for future.
Budget Making: This is one of the necessary evils that will help you to realise your goals for financial planning. This is one of the ways to put an end to over spending in the long run. You can plan to save only if you know how much money you have for spending. Making a budget helps you in many ways; it helps you to know the amount of cash you have for spending; you know your spending pattern and curb overspending, and you know how these should be altered in order to materialise your long and short term financial goals and help to spend within your earnings.
Many of you do not take into account the amount of cash taken out of the ATM or money spent on online shopping. However, when you make a budget, you will be able to keep a track of all this and see if you need to cut short some of the unnecessary expenses or ones that can be done at a later stage. Making a budget also help you to distinguish between 'necessity', 'desire' and 'luxury', thereby helping you to prioritize your expenses.
Investing Wisely: This is something most of us learn either from experience or by getting professional advise. There are several options of investing available these days and one of the best ways is to save your money in banks. Keeping cash at home will not make it multiply but if you deposit it in the bank it will be safe. Most of the banks have come up with good investment schemes to help your savings grow in the long and short term. You need to find out which bank has good services and also has some good investment options that will help your savings grow.
You can also invest stocks, mutual funds, insurance, pension plans, and get to know how to save on taxes. There is ample information about such investments provided in the pages in this website that will help you to have a better understanding about them so that you would be able to decide what would be best for you. Although investing in stocks is very profitable, you should have a good idea about the market when you invest.
Someone has rightly said that you should not put all your eggs in one basket and the same goes for investment. Never invest all your hard earned money in one kind of investment or with one organization. Be very careful with your money and think twice when you buy an insurance policy, stock, or mutual funds etc. Planning for the future is very important as you may not be able to earn for your entire life or have to deal with financial emergencies. However, good financial planning ensures that you save a sufficient amount for your future needs.