Financial Planning - A Simple Start

If you believe this to be one among the other complicated advices, then take a break. Reality is Financial Planning could be started simply on your own, the way our ancestors had managed their finances ahead of times in absence of information tsunami, which we get these days.

Try these smart yet simple steps to simplify your finances and also to keep a little extra in your Bank account: -

1) Minus a portion out of your Income: - When you get a salary credit of  Rs.20,000, then stop seeing it as a credit of 20000, rather, take it as a credit of Rs.19,000. A meager sum of Rs. 1000 could actually start making difference in few months’ time. It could help you build your emergency fund which is supposed to be around three months of your total expenses.

2) Expenses Track: - This sounds obvious but you do not do it. You probably forget about that popcorn and Coke swipe at a movie theater or vegetables/fruit shopping while you are rushing back on your way home.Few hundreds gone untraced could actually chunk out a large portion of your income.

The best way to track is to write it down but If you dislike the idea of keeping a notebook then you can use all the handy trackers available online. For instance, you could download mobile or desktop application at www.trackeverycoin.com

3) Standing Instruction: – Place a standing instruction in your Bank to pay all the Utility Bills, Rent or your Cell Phone bills that seem to be fixed expenses of the month. The idea is easy, firstly you get away from paying late fee and importantly, you are saving yourself from keeping an option to hold the payment and utilize it for other purpose. If it’s gone, it’s gone.

4) End Month Review: – Initially, reviews will be an eye opener for you to see where your income is going but if done in continuation, you could actually come to a point where you start having surpluses at the end. Trust, these easy steps can get you on your path to set a secure financial future.