Being a Financial Advisor, it is quite normal that family and friends turn to me for financial advice. However, there is one area I assist is managing “personal finance.” This particular term may seem daunting to many however if done correctly can be quite effective.
There are some expense that we cannot ignore such as purchasing something important, starting a business, any sort of unexpected expenditure, raising a child and its education. Such a pressurizing situation can make a person go insane. You may have to sacrifice many things during such circumstances. However, if you have planned your personal budget well then dealing with such expenses will become a lot easier for you in the future. For this, one needs to have a concrete financial plan.
Anytime things can happen in life and one cannot predict its course. You are always at a risk of losing your regular income. A person’s income can come to a halt due to many reasons such as accidents or losing a job. Accidents are often insured (it is very crucial to have such insurance) whereas there is no insurance for losing a job.
Even a person with a perfect financial plan would never want this to happen, despite of saving and all other factors required to deal with the situation. Hence, it is a high time for all those who have not yet started planning their financial expenses. The most effective technique of handling such a situation is to save some money for emergencies. Such an initiative will help you to survive during difficult times and assist in dealing with income shortage.
Manage your monthly budget. Make sure to incorporate your additional incomes such as incentives, cash award, festive bonus or any other incomes towards the emergency fund. While planning your contingency saving, try to visualize your future investment. This will help you plan better.
Often during financial crises, one may think of applying for loans. During such situation, people also fall prey to various privates loan shark who provide quick assistance but charge heavy interest. Planning your finance well will offer you the required peace of mind in the future.