Financial Planning Tips for Beginner.
Financial planning is important as a beginner or an expert. You need to invest early in life! Do you think it is important to invest, or it’s just an old term used in this new era? Financial planning tips are just nat a piece of advice that you need you to know but a tool that you can use to increase your financial life.
Financial planning is really important in your life and you can say, it’s the base of your life which will choose what and how you are going to choose your lifestyle. Now come to the main question that is it really important to start early in life to plan and invest in a different type of investment and assets, the answer is yes.
Have you ever listened about the term known as “Compounding Effect” it is also known as the eighth wonder of the world, mainly being popular by the biggest investor Warren Buffett. Compounding effect means when you invest in something and it starts to get multiplied by its current quantity according to time.
Start Investing Early in Life.
So when you start investing early then even your small amount will be get multiplied in the long run and will give you a much more value then what you invested. Here you got your first tip that you should start early in life but which time in your life will be the earliest time and best time? So if you are an unemployed or a student having no source of income then first start earning an amount in which you can at least fulfill your basic needs of life. After all this, it’s the most important and best time investment.
Where to invest?
In early life you will be not having a lot of money flow or source of income, so you should start with stock and the best option is the mutual fund. Remember mutual fund is also an investment having risk, but it’s less in the long run and if you are not a very active investor in the stock market then you should opt for the mutual fund.
Opt for the SIP term.
Large-cap equity fund. Cheak it on every website to find the score.
A mutual fund is better than the stocks is because you don’t need too much knowledge and you also don’t need to be relay on the company because the mutual fund invests in different stocks and bonds.
If you want to invest in the stock market then invest when the market is getting slower and sell when the stocks are getting up.
Avoid taking Student Loan.
Taking student loans early in life you give you a financial burden and the money which the bank will pay for your education will be taken to you with an interest rate. So when you will start doing the job the most of your initial income will be taken by your bank and this will make you trouble in your investing career.
So the alternative to taking a loan is Scholarship Programs, a Part-time job, or you can opt for some other option like government programs and exploring some new ideas for your financial journey. Note: these options are a piece of advice that had been given with the viewpoint of investment and financial planning.
Getting you and your Family Insured.
Create a financial wall for yourself and your family member so that in any kind of unexpected situation you and your family will be able to tackle that problem financially.
As a human, we sometimes get seek and because of that our work-life balance get harmed. But very few times in life get some kind of health instability in life and because of which we have to suffer in many ways, even someone in the family gets some kind of health issues then our financial condition becomes very critical. So you should explore the best options and make a decision which will help you in the future if you get to seek.
Get medical insurance of the maximum amount for you and your family which you can afford.
Health Insurance is Must.
Never opt for Endowment Insurance or ULIP Plan.
Because life insurance is not just a financial investment but more than that. These two plans will give you only the benefit in terms of finance but if you want pure and full life insurance then go for a term plan. These two plans don’t give you maximum life coverage.
Opt for Term Insurance.
Never put your money in a savings account for a long time.
Only opt for investment whose interest rate is more than the inflation rate. This life insurance will give you maximum life coverage.
Get life insurance with maximum life cover.
Always keep in mind that if your money is not growing then it’s downgrading.
The inflation rate is called the increase in the price of the same thing of the same quality according to time. So for example, if you don’t invest in the assets whose interest rate is more than the inflation then you will be becoming poor in the long run if you saving account in your bank is providing you the interest of 3.8% and the inflation rate is 7% you are losing your money by 3.2%. So at least you should opt for FD fix deposit which will return you around 7% per annum.
Never put your eggs in the same basket.
Sukanya Samriddhi Yojana is a government plan for daughter which you can opt for.
If you have a daughter then go for this government plan for investment, this will help your daughter and your family in the future financially for the educational purpose.
Pay all your premiums on time.
Doing this will help you to not be charged that extra amount as fine.
Start reading finance blogs and news daily. You can check the precious content on finance on Ur Startup Forum.
Doing this will help you to grow your knowledge in the finance sector.
Invest in Real estate.
Invest in real estate carefully. You can buy a small house in your city as an investment. Always buy real estate when the market is down.
Caution all these suggestions are just a piece of advice and all your decision will depend on you and your financial knowledge, this banner is not responsible for your any action.
Don’t just take this advice as a financial tip but as a tool that you can use to really have a growth in your life and your beloved ones.