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Personal finance tips that you can follow

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Personal finance tips that you can follow

Personal finance is a vital ball game but you should be aware of some highly necessary tips and tricks. Here are some that you can follow in this regard:

  • Periodic financial reviews are a must and so is personal goal setting- Always periodically review your overall liabilities and assets along with your overall finances along with understanding the entire picture. Understand a few basic tenets such as the fact that lower debt equates to lower spending with your credit card and lower spending on things automatically equates to higher savings. Always set personal goals like vacations, buying a home or car, education of your children and so on and then work out the savings timeline needed to achieve the same.
  • Budgeting should be done right away- Make your own budget for the entire year. You should also stick to this without fail since this will help you spend money in a planned and controlled way while achieving financial targets simultaneously. Always update your passbook and take stock of bank statements whenever you can. Always update your budget on a regular basis in order to see whether things are proceeding as per plan or not.
  • Make financial goals a family affair- Involve your family members including children about financial goals, targets and reduction of expenses. Teach your children about the importance of saving for the future and other financial concepts. Always have a collective family money plan in place so that everyone sticks to the budget and is in sync in a manner of speaking.
  • Save for medical treatments later on- You should always have extensive health insurance for yourself and your family members. Medical treatments are costlier than before and you should always safeguard your family finances against any unforeseen medical costs later on.
  • Have a child plan in place- You should start planning for the future of your children. Make sure that you have an investment plan in place for meeting the costs of higher education in the future.
  • Life insurance is a must- Always make sure that you have life insurance coverage for your family. Make sure that you have optimum insurance in order to safeguard your family’s financial future. Work out the amount required by your family to maintain the same standards in the future and make your plan likewise.
  • Reduce debt as much as possible- Always make sure that your outstanding debts are cleared in a disciplined way. Credit cards come with huge interest and penalties, make sure you clear credit card debts first.
  • Savings should come prior to investments- Make sure that you are saving separately after lowering unnecessary expenses before you start investing a certain amount every month.
  • Retirement planning should be done early- Make sure that you should start your retirement planning as early as possible. Save for adequate funds at the time of retirement by investing in PPF, NPS, annuity schemes and the like.
  • Impulsive buying is a bane- Reduce impulsive purchases like shopping for items at the mall, eating out frequently and buying items online. These are things that you can definitely restrict and this will help you get a good amount in savings for the long haul.

 

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