Financial Planning: Real Financial Advice for Real People

Whatever you do in life, whether you are a Businessman or a salaried employee, you are interested in earning a good income to keep up your standard of living. This requires that you keep checking different parameters such as source of income, liabilities and net worth. Financial planning is the systematic manner by which we control and manage the above parameters with the view to increasing one’s net worth.

Given below are simple tips on Financial planning which will really make your money work for you..

1. A penny saved is a penny earned.
2. Just keeping a record of your expenses will magically reduce them.
3. A credit card is a good servant but a bad master. Never use it for impulse purchases but only in a crisis situation.
4. A budget makes senses only when you stick to it. It is a very important tool in financial planning. Remember if you do not stick to your budget, money will not stick to you.
5. The first rule in investment is earning safety of your money. High returns from fly-by-night operators is best caution, choose caution.
6. The simple goal to save an “x” amount of money every month makes sense. Each addition to your savings gives you a big kick so keep up the monthly savings habit.
7. Remember savings can come only by reducing expenses. For eg. Your car could be guzzling fuel or your electric bills may be shooting up or you may be spending too much on unnecessary clothes. But these are the areas of potential savings if you can cut down on your expenditure.
8. Meticulous records of liabilities can end up saving the whole lot of money spent as delayed payment charges. Paying insurance premiums and credit card bills on time, filing income tax returns on due dates etc. will save a good chunk of hard cash.