Does financial planning need a proper method?
Need of proper financial planning?
A successful financial plan will assist people in achieving financial freedom, which is essential for long-term stability. It is a long-term process that takes into account a person’s risk appetite and changing financial demands.
. Having said that, most people, according to industry experts, are not in control of their finances. People are often seen with large loans, credit card payments, and insufficient savings and assets to achieve their financial goals.
What is balanced financial planning?
Balanced financial planning, according to financial experts, is the secret to financial stability. “A successful financial plan will help individuals achieve financial freedom, which is critical for stability,” says Navin Chandani, MD and CEO of CRIF High Mark. It is a long-term process that takes into account a person’s risk appetite and changing financial demands.”
A well-balanced portfolio should have a proportionate split of assets between growth and savings instruments, as well as investments in different asset groups. Furthermore, if an individual has taken out a loan or uses a credit card, it is vital that the EMI and credit card bills are paid on time.” financial planning requires a holistic approach to savings, investment, and insurance.”
According to experts, everyone’s financial needs change over time, so it’s important to prepare ahead. “It is critical to map these through expenses such as higher education, recreation, weddings, child care, starting one’s own company, or even early retirement,” Chandani adds.
how is it possible to bring financial stability?
- Start saving early and make it a habit to put away a portion of your monthly income in a savings account.
- Follow the budget – Make a monthly budget by reviewing all of your expenses and sticking to a specific spending schedule.It’s the most effective method for keeping your bills paid and your savings on track.
- Keep a close eye on your finances – Take advantage of credit opportunities that are customised to a person’s repayment capacity. Keep track of your credit reports on a daily basis to stay on top of your finances.
- Work wisely – Experts say it is best to invest in income-generating assets that are supposed to appreciate in value over time.
- Don’t be late – make good use of credit cards and pay on time.
- Create a balance – Make sure your portfolio is well-balanced, with the correct asset allocation plan and a good combination of secured and unsecured loans for your specific financial objectives.
- Maintain a good credit score – Having a good credit score would help you get the best credit opportunities at any time in your life.