We have a fixed schedule for most things in life, no matter how we run our usual errands. You can be a person who lives by the clock or an impromptu runner who likes to plan on the go. But, things like income, rent, bills and essential payments are ought to be scheduled.
This organised schedule helps us in leading a stable and relatively predictable life. Planning a budget for your life gives mental peace and helps you manage your expenses better. If you are aware of how much you earn, how much you need to save and how much you are left with to spend; you have a greater control over your life.
To make sure you save, you need to plan out your financial budget at the start of the month. It needs you to put aside your savings and then think of spending.
Savings = Earnings Expenditure.
So to have a sufficient amount of expenditure and regularity you need to decide on your savings. At the start of the month, keep aside the amount you plan to save. Don’t think of spending at the start and saving what you are left with at the end of the month. This way you will be running out of emergency finances when your expenditures outrun your budget.
But where should you save and how can you save effectively? For savings are meant to be your resources for both short term and long term needs. A good way to save as well as invest your money is investing in ULIP. Armed with the benefits of both insurance and investment, it will not only help you keep aside a part of your earnings but also help with the tragic emergency needs. You can have insurance not only for yourself but also for your loved ones. For the people dependent on your earning, your savings are the only source of their livelihood.
Not only does it provide a life cover, but also a relatively large amount at the end of tenure. ULIPs are a great choice when it comes to fulfilling your long term needs.
Switch between funds according to your risk appetite. But to ensure the regularity in your savings, schedule your premium at the start of the month. So, that you have a clear picture of how much to spend for the remainder. This way you will not only have a budget but the regularity of your expenditure.
Do plan your financial budgets and add the schedule to your expenses. This timely saving and investment will reap you fruits in your future. And if still doubtful of where to put the savings; our personal financial advisors shall be happy to help understand your needs.