In today’s modern world, women too have stepped up and become the breadwinners for their families. However, becoming independent isn’t just about earning well and spending on your own expenses. Saving for the future is also an essential part of it. For this, you need to know the importance of investing in the right plans. Here are the key points that you need to know while managing your finances:
Set objectives and financial goals
If at the end of every month you are saving 5,000 INR, then set goals to save around 8,000-10,000 INR per month. Although this might seem a difficult task, push yourself to achieve it. Keep your financial goals specific.
Whether marriage, child education, travel, or business, defining your objectives is a must while planning your finances and investments. It will help you understand your purpose of investing, making it easier for you to choose the correct investment plan. Once your objectives are clear, you can create a plan that suits you, whether long-term or short-term.
In the long-term, you have the public provident fund (PPF), post-office funds, mutual funds, insurance, equity funds, systematic investment plan (SIP), etc. While in short-term, you have fixed deposits, recurring deposits, liquid funds, and so on. You can also consult an investment consultant who can introduce you to different types of investment.
Create a financial plan
If you’re new to handling finances, you might be wondering what is financial planning and how to do it? The answer is simple; start with your monthly expenses. After calculating your essential expenses like bill, rent, EMIs, etc., make a note of unnecessary expenses. It will be the disposable amount that you can save and invest. You can also create a fixed budget for every month. This way, you will stick to the budget and spend only a limited amount, saving more.
Create an emergency fund
Unfortunate situations arrive unalarmed, whether small or huge. As per experts, you should have some money saved to survive at least 3-4 months. If you can’t afford to save such a huge amount, start saving small amounts every month that will help you build an emergency fund. One way to help you get through this is to set up an automated process. This way, even if you forget, your savings account is getting built.
Look for investment consultants
You need to identify the right investment consultant who will help you invest in suitable investment options. If you’re planning to invest in insurance, look for a certified consultant with the Insurance Regulatory and Development Authority (IRDA) certification. If you’re planning for mutual funds, then your consultant must be certified by Association of Mutual Funds in India (AMFI).
Moreover, your agent should be able to provide you with a complete investment solution. He/she should be able to understand your objectives, collect all the requirements, create a suitable plan for you, tell you where to invest money, and help you successfully execute the created plan. He/she should be unbiased.
Once you start investing, you need to keep reviewing your plan from time to time to ensure you stay on track and achieve your goals. You may come across several situations where your investment plan needs an adjustment and that may seem daunting, but make sure you don’t step back. Happy investing!