It was a big day for Pushkar and Ritika. They were getting married after a courtship period of 5 years. Ritika’s mother gave them mantras for a happy married life.
- Demonstrate your love implicitly.
- Be supportive and protective towards your spouse.
- Be accountable towards your spouse.
Pushar’s father then added, “This is an advice for your married life now I am going to tell you a 3 point formula for happy financial life.
A happy financial life is not limited to making more money or fixing money concerns. It is about carefully planning and nurturing your finances. Before you plan, assess where you currently stand money wise, understand every financial aspect of your life, set goals and find ways to reach each of those goals.
- Review Overall Financial Profile: Analyze each and every financial transaction like income, savings, expense, liability, assets, debts, etc. Also figure out how much you spend on non-accounted expenses like outings, dinners, movies, etc. Estimate the areas you can make necessary corrections to maximize savings. Correct the money mistakes you have committed earlier, like clearing your bad debts. If you have parked your savings in the wrong channels, withdraw and figure out the suitable ones that give better returns.
- Identify And Prioritize Financial Goals: We all have money goals in life, like buying a car, a home, going on a vacation, child’s education, building retirement corpus, etc. But we usually do not concentrate on priority goals like retirement planning or child’s higher education and we rather concentrate on less important or ad-hoc short-term goals. Thus, many times, we fail to build sufficient corpus at the right time to fulfil our financial goals. In order to avoid repercussions or commit big money mistakes, it is necessary to identify and prioritise your financial goals and follow a plan. Estimate the required corpus to meet every goal after considering the inflation rate.
- Dedicate An Amount Towards Saving And Invest In The Right Channels: Make dedicated savings and investments to achieve each goal separately. Investment planning should be made after assessing several factors like inflation rate, liabilities, risk appetite, debts, etc. At this point ULIP plays a very important role in catering to fulfil long term investment needs with good returns and a life cover. Edelweiss Tokio Life Wealth Plus comes with a plus point of having zero allocation and administration charges. In addition to this, the plan provides additional allocation every year starting from the 1st policy year till the end of the premium paying term.
Financial planning is a process of meeting your goals through proper money management. It is crucial to create a customized financial plan.
Pushkar and Ritika were well versed with the mantras of a happy married and happy financial life.