Wealth Guide: Financial Planning for Beginners - Steps, Strategies You Can Take to Get Rich

Wealth Guide: Financial Planning for Beginners – Steps, Strategies You Can Take to Get Rich


Wealth Guide: Financial Planning for Beginners – Understanding personal finances is the first step to financial education. In order to effectively manage your life financially, you need to learn the basics of money management for proper income allocation, effective debt management, building savings and wealth creation. Harsh Jain, co-founder and COO, Groww, shares his knowledge of financial planning for beginners and steps, a strategy that can be adopted to make you rich.

Master the art of self-control

“The sooner you learn the art of self-control when it comes to money, the better equipped you will be to have your finances in order. Buying something on a credit card at the moment you want may seem easy, but it’s better to wait.” until you save on this purchase. It is always better to make money from your current account than to increase interest rates, ”says Harsh Jain.

Sketch your financial future

“Managing money is not as easy as you think. To learn more, read some basic books on personal finance, do more research on how you can manage your financial future, and once you do, you will be guarded by knowledge. It will help. “It gives you to rethink your purchasing decisions before you spend a lot of money every weekend, plus you’re financially sound. That means you’ll never be taken aback when it comes to finances and financial planning,” adds Jain.

Find the ways of your money

“Knowing where your money is going is one of the most important factors in financial planning. Once you go through some books on personal finance, you’ll know how important it is to make sure your expenses don’t exceed your income. Best Way So once you know how much your morning coffee add to the overall course of the month, realizing that small manageable changes in your daily expenses can have a big impact on your financial situation, so how do your monthly expenses exceed your income? Do you know where your money is going? money is flowing, and determine which stream you want to block and which to let flow, “he added.

Always have an emergency fund

“It’s a mandate for personal finance management to have an emergency fund. No matter how much you owe on loans, credit card debt, and no matter how low your salary may seem, it’s always wise to find some amount, any amount for “It depends on stocking up in the emergency fund every month. This can help you avoid financial difficulties. If you get used to saving money and considering it a non-negotiable monthly expense, you will soon have more than just a saved emergency fund,” he suggested.

Save on retirement

“Financial planning also means preparing for early retirement. Don’t wait to save for retirement and start as soon as possible to set your financial goals. To take advantage of compound interest, start saving and investing early. As a result, you will have to postpone “Start investing in some new investments, such as stocks, mutual funds, FDs, etc., to grow your pension fund,” he explained.

Don’t take taxes lightly

“You could overlook the fact of taxes, but income tax is a job before you get your first paycheck. When you get your starting salary, you have to know how to calculate whether your salary will give you enough money after tax. Fortunately, there are a lot of online tax calculators, so you don’t have to set up and do the math yourself, “he explained.

Clichés – Your health contributes to your wealth

“Don’t bargain for health. If monthly health insurance premiums seem impossible to you, imagine what you would do if you had to go to the emergency room, even if it was a minor injury. How much would you spend? Don’t wait for the ideal life date for health care It’s easier than you think to end up in a car accident or fall on the stairs, but when you’re financially prepared, it’s much better, “he says.

“Financial planning for beginners is very easy, you don’t need a luxurious financial education to be an expert in your personal finances. All you need are a few effective techniques and good financial knowledge, and you’ll be ready to lay the groundwork for a financial future,” he concluded.

(Disclaimer: The views / suggestions / advice expressed here in this article are solely by investment experts. Zee Business encourages its readers to consult their investment advisers before making any financial decisions.)

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