As a grown up adult who is working, it is your responsibility to handle your finances well. By having little to no savings, no budgets in place and being in debt, you are digging your financial grave. Despite having a regular income, some people struggle to keep their finances well organized, Best Financial Adviser Kuber Mindz Moneymindz observes. That’s why we have made this list of financial to-do.
1. Begin a budget
A budget contains your regular income, expenses, savings, investments, insurance, financial goals and the time frame to achieve them, which will be of help in keeping track of your money. You will know where your money goes each time you spend, and how to direct it to something useful and better such as investing.
2. Review portfolio
Begin investing and have an idea of your risk appetite. Don’t stuff too many funds and stocks in your portfolio. Ideally, a dozen stocks/funds in a portfolio are sufficient. Estimate which stocks/funds you want to exit, enter and/or continue. A new investment strategy might appeal to you. Review your portfolio now.
Insurance is very essential. Term Insurance offers life coverage and Health Insurance offers health coverage. Home Insurance offers coverage for your house and household objects. If you are travelling or planning to travel, consider buying Travel Insurance that will cover unexpected expenses pertaining to the travel.
4. Emergency Fund
An Emergency Fund is meant to provide finance when you are hit with a financial emergency. Experts suggest keeping 6 to 12 months of your regular income in your emergency fund. This will ensure you have money to deal with financial emergencies without adding on additional debt. Job loss, urgent repairs, hospitalization, etc are some examples of financial emergencies.
5. Retirement Planning
After years and/or decades of working, you will have to retire from active employment one day. With joint families decreasing in number and nuclear families increasing, it is prudent for each one of us to plan for our retirement. Our retired days are the time we relax and follow the passion we always wanted to follow. Compound interest works better the younger you are, as you have more time for your retirement. There is a plethora of investment opportunities like Employee Provident Fund, Public Provident Fund, National Pension Scheme or 401(K) diligently.
For more information visit www.moneymindz.com or give a missed call to 022-62116588.