Pranjal (25) was very nervous as he had a personal interview round.
When his father saw him so stressed he asked him, “Why are you so nervous my champ? I have never seen you like this before. Is it going to be so difficult?”
Pranjal replied, “No Dad. It’s not about the interview. I know I will be selected. The reason of my distress is related to financial decision. Our family is still dependent on you and you are the bread winner of the family. When will I manage my finances? How will I streamline my financial decisions?
“There is nothing to worry about. I am here for you and I will always be there for you. However, to eradicate your query I am sharing some important tips to get you started on your journey towards financial freedom. Remember, you do not attain financial freedom when you get your paycheques. Rather, it is achieved only when you get your finances on track. You need to plan well in advance to get your finances in order. We know that it isn’t an easy task to plan your finances. So, here are a few tips to get you started on your voyage towards financial freedom.
- Judicious vs Reckless
To secure your financial future, you need to first learn to differentiate between your wants and needs. Only then will you be able to rule out unnecessary expenditure and start saving a substantial amount every month. Also, overseeing your finances sensibly will help you slowly increase your savings. This, in turn, will help you build up a lot of wealth in the long run, provided you invest intelligently.
- Set Your Financial Goals
While climbing the ladder to financial independence, your focus should be on your financial goals. Your financial goals can include clearing all your debts, planning for your retirement, creating a contingency fund, buying a house or car, etc. Set your goals, along with deadlines for the same and invest towards them religiously. Investment in ULIP is one good option if you want to reach your long term financial goals.
- Buy Insurance
Tomorrow you will get married and have kids. I know this is far sight but have you ever thought what your family will do if something were to happen to you? Wouldn’t you want to secure them at least financially? Well, that’s why life insurance is a must-have for every individual. Basically, by acquiring insurance, you are protecting your dependents financially. Ensure that you buy life insurance with adequate cover.
- Don’t Forget Your Plan B
A contingency plan is your friend in times of need. Most of us tend to ignore a term plan but it is very important when it comes to securing your financial future. What if you suddenly die or meet with an accident? Think about it. A term plan guarantees your financial security, especially when faced with unforeseen circumstances.
Securing your financial future is not a rocket science. You just have to take a hold on your finances and follow these tips wisely.