Getting your finance in order is important but most of us don’t do it. Creating finance plans can help you in the future. You can handle the hardest situation also if you maintain your financial plans.
Here are some reasons why one should make a financial plan and get finance in order.
The first reason to make financial plans is you can maintain an amount of money as a saving which can be useful for you in your hard times. Second, if you see there are lots of small and big expenses, from which some expenses we do is unnecessary. We spend money without thinking about unnecessary things. This habit of spending money unnecessary always keeps us at the loss. So if we make a plan sheet ready then we can avoid such kind of unnecessary expenses.
To make a plan sheet, first, you have to list your monthly expenses. After listing the monthly expenses, filter the list according to its priority or importance. In this way, you can get an idea about your expenses. After filtering the list settle the amount you have to spend on a particular item. After that make a total of it. Now you have a complete list and number of some amount you have to spend every month compulsorily. Now keep this amount of money aside and don’t spend it anywhere else so you don’t have to arrange money from somewhere else for your this important daily life spending.
Now focus on another list that you filter according to its importance. Keep some amount of money aside for this only if it is necessary otherwise ignore it. The amount remains from your income after spending on necessary items, keep this remaining amount in your saving bank account. So in this way you can also grow your savings. You can also invest this remaining money in some right things which can return you some profit. Investing money on such kinds of things which give you profit is also one type of your saving.
If you do this little thing then I’m sure you will get some or little help in your finance. Getting your finance in order also helps to secure your and your family’s future. This is also one kind of future planning. A common man gets at least 6-7 bills per month. This bill includes a water bill, energy bill, internet bill, mortgage/rent bill, gas bill, loans which include a car loan, personal loan, etc… So half of your income is spent on these bills only. You must pay these bills on time because if you don’t then it can affect your credit.
Before doing the following steps first you have to commit yourself that you will follow this plan for the long term. Because if you leave this middle of the year or month or you will not follow this then it will not give an appropriate result.
1 Establish an Auto Bill Payment.
Establishing an auto bill payment is very helpful to you. This makes your payment automatically means you don’t have to do it manually. So in case you are not available or you forgot to pay bills then late payment will not affect you because auto-pay bills already pay your bills automatically on the set time and date. There are many applications are available that support the auto-pay bills feature and allow people to pay their bills automatically on time. Applications like Paytm, PhonePay, G-Pay, etc… allows users to pay bills automatically.
All they need to do is follow some basic steps to create an account on this. After the account is created they have to connect their respective banks to this account. Then by simply setting the auto-pay bills date, time, amount, and other necessary details, their auto-pay feature will start working. Autopay bill is far better than manually paying because you don’t need to be always available at the time of bill dates. So this auto pay bill help you to pay your bills on time and prevent you from paying penalty on them.
2. Keep your financial documents safe.
Financial documents are very important so keeping them safe is also very important. Make a file of your financial documents and keep it in a safe zone. In India, there is also a safe locker available for citizens to keep their documents safe. This application is delivered by the Indian government named DigiLocker.In this Digi-locker, you can simply log in with your mobile number or aadhar card and keep your documents in this safely. It stores the E-version of your documents safely and for a lifetime. You can also access these documents where you want by just clicking on Digi locker and entering ID and Passwords or you can also log in with your mobile number.
The aim of giving this information is to keep your all financial documents safe. So whenever you need this then you can get it in one click. You don’t have to find it everywhere. This saves you time.
3. Review your financial Growth.
Review your financial growth once a month. Because it is not sure that once plan you made for your finance will always be perfect. Life changes every day and you will need new plans every month. Sometimes it happens an emergency occurs and you have to change all your plans and so the schedule you created for your finance can not be followed or maintained. So according to my point of view, you should create financial planning every month according to your situation. While creating financial planning keep in mind your income, important spending, unnecessary spending occurs sometimes, bills, and other important things.
You also should set an alert on certain dates. This can help you to remember sometimes when you forget. These small tasks help you in your daily life and keep your financial condition well. The money you have saved from your remaining income can also be helpful to you in a medical emergency.
4. Open Different Accounts for more than one source of income
There may be times when it is easier to deposit income from multiple streams into separate accounts when you have more than one income stream. There should then be a goal attached to each account. In this way, you will avoid spending money you planned to save or put towards something else by mistake. Think about earning dividends from a stock market and passive income from a real estate investment, for example.
A retirement bucket list vacation is on your bucket list, so you are saving for it. To accomplish this, you need to set up automatic deposits into a Flexible Certificate of Deposit account for each of these income streams. It means you know exactly what that money is going towards and aren’t unintentionally spending it elsewhere.
5. Insurance Coverage
Make sure that you have insurance coverage. We don’t know what is going to happen in the future means we can’t predict the future. So make sure your insurance coverage is good. Floods, earthquakes, and other natural disasters can harm the property where you are living. Get your insurance to secure your property. If you are living on rent then you can also apply for rental insurance so that you will get cover if any natural disaster occurs. This can help you to secure your property and future also. You can contact a trusted insurance agent for this process.
There are certain types of insurance like car insurance, home insurance, health insurance, life insurance, etc. all this gives you cover from the natural disaster. Make sure everything is from the insurance agent before signing the insurance agreement. Life insurance might be offered from the place you are working if not contact a trusted life insurance agent.
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We have discussed some points which you can do to make your order in finance. Financial planning makes life easier because you have a planned structure for money which you have made by considering your financial structure. It prevents you from the worst situation and if you are already suffering financially then it may prevent you from getting things worse. It secures your and your next generation’s future. Living good financially leads you to a better and happy life.