5 steps for Financial Planning

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5 steps for Financial Planning
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5 steps for financial planning
Theres no optimum time to start planning your
personal finances. The best time to start is
now! This presentation will help you organize
your finances for a better future.
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Plan your budget

• The 1st step to start with is to plan a budget
  for yourself. An easy segmentation that can be
  looked at, are as follows
• Essential Spending (Necessary for survival)
• Discretionary Spending (You can do without these)
• Savings
• Make allocations for each segment and do stick to
  it no matter what!

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Set your goals

• Setting up goals is necessary to initiate the
  process of achieving them.
• Create a spreadsheet divide the goals into 2
  parts
• Long Term Goals like buying a house
• Short Term Goals like a foreign vacation next
  summer
• Short-term goals should always be planned on your
  discretionary spending
• Mantra Can your short-term spending be delayed?
  If yes, then definitely delay it.

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Get acquainted with the financial world

• It helps to have a sound knowledge of financial
  jargons like compounding, taxation
  diversification
• Websites like Investopedia are great for learning
  about investment personal finance jargons
• This will allow you a stronger understanding of
  personal finance and make wiser investments.
• For wealth creation ideas knowledge updates,
  you can subscribe to the ithought blog.

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Know your assets

• Your cash lying in your account actually
  depreciate in value over time.
• Proper asset allocation can help you grow your
  wealth.
• Variety of instruments are available to grow your
  wealth with various risk profiles. Some of them
  are Equities, Bonds, FDs/RDs, Gold, Real Estate,
  etc.
• Every asset class has a cycle. The selection of
  asset classes timing the market cycle is
  important

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Plan your taxes

• Tax planning is important. If its difficult
  planning all by yourself, consult a professional
  tax consultant.
• He can help you plan your investments to lower
  your tax bill save you from paying unnecessary
  taxes.
• Plan your taxes at the beginning of the financial
  year, instead of the end. This gives more
  opportunities to invest save taxes. Investments
  like equities mutual funds give long-term
  tax-free returns.
• Saving the cost of a tax consultant can in turn,
  result in a costlier tax bill.

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We are always ready to help you plan your
investments!
Start Investing the way!
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