Staying healthy may not always be easy, it requires a checklist of steps you can take to make the odds in your favour. Doctors, and also number of reputable health experts can tell you what to do exactly, and what is the right time to do, to keep yourself in good shape and health.
But what about your Personal Finance? Opinion and approach may vary from person to person, but everyone’s main goal is to save, build and grow wealth. Your goals may be different from others but this difference is mainly because of priorities and needs which differ from one person to another. Many people are confused and don’t’ have the exact idea my which they can do so. But you will be happy knowing that there are also guidelines for every stage/decade of your life that will help you stay on track to achieve your financial goals —it doesn’t matter – what they are. “Similar to that of your physical health concerns which are unique in different stages of life, so too are unique financial health concerns which are unique to different stages of one’s life”.
Checklist for a Good Financial Health
Making a Budget
It is important to take cognizance of your income. You should make a budget that helps you make to live below the means and avoid overspending. Making budget makes you concern about your expenses and this is the basic and first step towards managing your finance. But only making a budget is not enough in terms to achieve your financial goal you need to be stick to your budget and stop overspending.
Save for Your Retirement
Planning for retirement should begin from early stage. Planning for retirement should start as soon as someone starts earning. Nevertheless it is never too late, even if you failed to do so by the age of 30, make sure that by the age of 40, your plan is in place. By this age your need to increase your contribution towards your retirement. Say if it say 7 thousand in your 30’s make it 15k in your 40’s. You will not realise it today, but if you are not saving and spending whatever you earn, but when you will retire you will be left with limited fund hence, it’s important to plan everything and set your path for retirement now only in terms of savings and income target to make your future good.
Rebalance Your Financial Portfolio
Rebalancing your finance on an intermittent basis helps in placing (making) investments in accordance with your goals. The rebalancing idea is quite simple but the time and frequency of rebalancing can add some strategy into the process. Many investors make rebalancing more complex than actually how it needs to be. You can take help from financial planners and money managers to rebalance your financial portfolio. This regulates your investment and avoid you from falling down financially.
Get Life and Term Insurance
Life insurance is the best option available which covers your life and your family’s future even after you. The only thing you need to do is take a policy and pay yearly premiums for that which are quite affordable. There are many life insurances available from which you can choose according to your needs, priorities and pocket.
Apart from covering for life and family’s future having a life insurance provides you certain tax exemptions too. Which can you to save a bit and add to your savings account.
Your credit profile is the most important thing which determines that whether you will be able to qualify for a loan or not. If yes, at what interest rates. Generally in India CIBIL TransUnion, Equifax, and Experian are the major credit reporting agencies. One can at least yearly once check their CIBIL through them. It can help you recognize errors if any. You can take step to improve your CIBIL if it is low as it is the most important asset on which your future lending depends. A regular check will shield your from fraud and threat too.
Clearing all Your Debts
Clearing your debt should always be on your priority list. A debt is not only owing someone else’s money but it puts you in certain mental stress and tension too. So, if always better to pay it off as early as possible and enjoy a burden free and relaxed life. But it’s not an easy thing. Paying off your debts early need a disciplined financial life so that you could be able to save. Start saving on monthly basis and when abundant pay it off to your lender. You can also go for part payments for this.
Plan Your Financial Goals
Goal is the most important thing to achieve anything. If there is no goal you will be directionless and confused about towards what you have to proceed. So, set your financial goals first and identify the financial master plan required to achieve your financial goals. Different stages of life have different objectives to be achieved, be it completing education or starting a family. Similar is with your financial goals.
Investment for Your financial Future
Earlier people had no options available except saving to secure their future. But things have changed now, there are multiple options available to invest money which it can grow with time. Mutual funds, Fixed Deposits, golds and purchasing properties are some of them. Investment is not only for your future but this can help to save taxes too. So, one way or another it helps you in many way and boosts you financially.
Financial Tips, Financial Checklist, Financial Health,Finance Planning, financial planning checklistIt’s very important to have enough money always so you can bear a sudden major expense or even a job loss without any stress or drastic measures or without dipping into your retirement savings or any other saving. To do this “The first thing you want to do is create that emergency savings account,”. Start saving on monthly basis and keep adding it whenever you have some extra money left after your monthly budget