World Financial Planning Day is celebrated every year on the first Wednesday of October to make people aware of financial planning. The Corona period has made people understand the importance of proper financial planning. Financial discipline is a must to deal with this kind of problem easily. Today, on the occasion of World Financial Planning Day, we are telling you some special things related to financial planning.
You should think about investing as soon as you start your first job. The money that is left in your hands after spending should be invested in the right place according to your own. Investment started at this time can make your future secure. You can easily build a large corpus by investing in Public Provident Fund (PPF), Mutual Fund, or RD among others. However, experts believe that if you invest at a young age, you should invest in equity-linked schemes so that you can get a better return on your investment. You can also take the advice of financial experts for this.
Apart from adding money for retirement, you should also be prepared for emergency situations like job loss. This emergency fund should be equal to your salary of at least 5 to 6 months. This will help you deal with bad times like the Corona period.
Corona has made people understand the importance of health insurance. It comes in handy in your bad times and saves your savings from getting exhausted on treatment in case of illness. Health insurance will help you get the right treatment. If you take health insurance at a young age, you will have to pay less premium for it.
Try to save money as much as possible. Because in bad times only this money will come in handy. You should spend money only on important things. Financial discipline is very important to deal with any kind of financial problem. For financial discipline, you should prepare a budget for your monthly expenses and compare the budget with the actual expenses at the end of the month. This comparison will make you realize how much you have spent in that month.
If you have taken any loan or loan for your studies or any other work, then settle it as soon as possible. Because you have to pay interest on it. Try to finish the loan as soon as the income starts. If you need money, then you should withdraw money from your investments from where you are getting low returns. Investments that give high returns should never be tampered with. The right time to start saving for retirement is when you get your first salary. Keep in mind that saving in the long-run has the power of compounding. The late you start saving, the more amount you have to invest to add the fixed amount.