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Many of us, including me have been a victim of “choosing easy wrong… instead of harder right” when it comes to financial planning.My family and I have witnessed many financial ups and downs… Lucky me, I learnt to plan my money before it was too late. Without a proper financial planning, one can get lost, and feel engulfed in the debt trap.

“You can become financially secured, once you know and you believe, that you have enough funds to pay for what you want today and in the future.”

Older folks, adults and millennials – youngster often ask on ideas to improve their finance and the right time to implement it. With the increasing trend of taking financial resolution at the beginning of the year. It gives you a blank slate and a fresh approach to start over.
However, there is no compulsion and you can start working on your financial habits at any time of the year. It is never too early to start financial planning, earlier you start the longer you can enjoy the benefits.
Most importantly, first analyze your current financial position before you start working of your financial planning. Many financial consultants recommend to hire a professional to give you an honest assessment of your financial conditions. As it may be difficult to be impartial about your own circumstances.

“Failing to plan is planning to fail” – Allen Lakein

When it comes to money, you should have a concreate plan. There are various elements which can affect you financial planning. Inflation rate skyrocketing, your future standard of living depends on your current financial plan.
We often choose a bumpy way in order to reach our destination, diverting from a clear tarred road. It’s high time to modify your expenditure for the years to come. Why not take up tips in order to plan and achieve your goals. Let’s us now talk about 10 financial tips which will stand concreate and not allow to shaken your financial plans.

Regulate your expenses wisely

Do you know, what is the basic marketing strategy of a super market? Next time when you enter a super market, try to notice that all the commodities of needs (Rice, pulses, veggies, milk etc) are place right at the end. Products which are child attractive, non-need products, new to market are place right at the super market entry.
This super market strategy is to make you buy those non-need and unnecessary products till you reach to the needed products. Often people fall in traps of such kind and live beyond their means and find themselves struggling for funds even before the month ends.
All those unplanned expenses will leave no money to fulfill the necessities. Expenses and savings go hand in hand and how wisely you allocate your income/salary with proper saving plan can give you accumulated wealth.
You should know the difference between saving money and spending money wisely. Saving money is to find the cheapest source and make purchase; on the other hand spending money wisely is a though process which goes along in decision making of a purchase. You should not only save money but also spend money wisely.

Develop the habit of saving/investing:

There are two basic rules of saving; Increase your income or decrease your expenditure. However, we treat saving just like our math homework, we keep delaying it until it is too late. Saving is not very difficult task, with a disciplined expense control you can save and accumulate wealth over a period of time.
You need to start saving or investing a part of your income, best way to do this is to activate an auto transfer of funds from your bank account to savings or investment account. After you transfer the amount you do not have to think about it, don’t get back to it, just let it be there accumulating.
Many investor and savers fall in a trap of expenses by spending $2 here or $5 there thinking it is a small amount. You can become a successful investor only if you understand the time value of money. $5 is not equal to $5 in the future.

Manage your debt wisely:

If allowed, debt can get spiral and before you realize a mount of debt will be all over you. Everyone has to manage their debt, no matter you have a small amount or large amount of debt. Smartly managing your debt has a substantial impact on your financial strength and you net worth is directly linked with how you manage your debt.
For starters, you need to make a list of all your debt with the details of creditor, installment frequency,debt amount, interest rate and due date. Having this list in front of you will give you an aggregate idea of your debt keep you aware for any unseen circumstance.
At time, you might run low on cash. But you need to make sure that you at least pay the minimum amount on the due. Obviously paying minimum due will not make real progress but it will avoid circumstances of paying high penalty on the due amount.
From the debt list you should prioritize paying the debt which has the higher interest rate. Credit card is the debt instrument which has the highest rate of interest. Also, you may pay off the debt which has minimum principle amount left over.

Plan your taxes

Are you one among those who plan their tax only at the end of financial year?? In that case you will never be in a position to choose the right investment or tax saving scheme. The right time to plan your tax is at the beginning of the year.
Tax planning involves several factors such as timing of your major purchase, Time of major incoming funds and planning your expenditure. Tax planning process is very crucial to reduce your tax liability and maximize your contribution to savings or investment. If you are a salaried employee than you can easily save tax by making quick restructuring of your salary.
This method does not require any cash outflow. You can add Transport allowance, Medical expenses,Food coupons, House rent allowance and leave travel allowance in your salary components.
In India PPF account (Public provident fund) is the best tax saving investment option. In fact, you can create PPF account online within 5 minutes.

As rightly said, controlling your expenses would help your shape your savings for the future is not too far. You need plan for your retirement and have a separate savings account other than your regular account in which your pay is credited. Invest on profitable shares. Investing in short term projects might help in doubling your money than let it sleep in your accounts or piggy banks.

“Playing with numbers has failed us all, looking forward can make even a tramp to count”.

There is no fixed time to start saving. Take it up as a challenge to have a distinction between your expenses and savings. Act as a physician before an aid occurs.

Use your other 8 hours wisely

Plan out your expenditure. Create an accurate budget for every week or for the whole month. Organize your expenses and debts like you do at your workplace. Get a clear idea of what and where you need to invest for your future, for the future is not that far.
Do not wait for the eleventh hour to plan it out. Don’t let your income drain. Burn the candle in both the ends i.e. take up simple jobs like writing blogs or any part time works.

Buy a Life Insurance Policy

Life insurance is a much-required instrument which everyone should have, but very few actually have it. If you are young and healthy it is quite easy to avail a life insurance policy at a quite reasonable installment amount. However longer you wait, greater chances that you get some major health issues and further the insurance policy prices get skyrocketing.
If your family and loved ones are totally dependent on your salary or income. You should get yourself adequate coverage. With this you shall eliminate the risk of your loved ones being helpless when the monthly bills come around in your absence.

Set Up an Emergency Fund

A penny saved is what all you need at times of emergency. Plan your expenses, cut it down to your preferences. Be it your bank accounts or a piggy bank. We often land up in tight corners when in need. Divide your expenses and savings for emergency funds.
Setting your emergency fund is a significant part of your financial plan. You should mark this money only for the unforeseen events, this fund could be a life saver in the event of unexpected loss of business or unemployment. Nature of unplanned expenditure is unexpected, sooner you set up the emergency fund the better off you will be if the inevitable happens.
Emergency fund should be in liquid form, weather in your saving account or any money market instrument which has higher liquidity. Best way is to set up an automatic debit from your current or salary account to savings or investment account.
You can start saving for your emergency fund each month with a small amount and gradually increase it over a period of time. Meanwhile your contribution to your emergency funds depends on Income and expenses, the basic principle is to save enough to cover 3-6 months’ value of expenses.