Finance
10 STEPS TO SET YOUR MONEY MATTERS IN ORDER
Almost every retail investor has heard of the investment term – financial planning, but only few of these investors actually understand the depth of this term. It is a no-brainer that everyone must plan and secure their financial future, however not everyone takes it seriously. In this article, we will help you get a grip on your finances by listing a 10-step investment process to create a solid financial plan for your investment portfolio.
10 steps to get your money matters in order
Here are a few simple steps that can help you get your money matters in order and considerably contribute towards wealth creation:
- Start consuming rich, personal financial topics
Are you unaware about how to manage your finances? Start reading. One can learn a lot about saving and investing, different types of investments and retirement, safeguarding the capital and insurance, debt and interest, etc. Reading on these investment topics will help you become financially aware and alert about your investments. - Decide what you wish to do with your money
Create a list of your financial goals. This is the first step towards financial planning. Once you have done that, assign a considerable period for each goal. - Combine all your bank accounts
It is advised to have as few bank accounts as possible. A bank account could be an amazing place to build or expand your emergency corpus. - Pay all your debts on time
It is advised to pay off all your debts and become completely debt-free. If you do not have the funds to become entirely debt-free at the moment, you may consider beginning with debts that charge a high rate of interests. - Understand your net worth
Create a list of all the assets that you own and estimate the value of each asset. Do the same for your liabilities. This will give you a clearer picture of your current financial condition and help you estimate your net worth. - Organise your different types of investments
It is advised make an inventory of everything you own which includes different types of investments, any loans outstanding, real estate, jewelery, etc. This will help you loved ones to be financially secured in case you fall sick or aren’t there around them to financially support them. - Systematize your investments
One of the best ways that ensure regular and automatic investments is by investing in SIP mutual funds. SIP or systematic investment plans ensure that an investor invests across all market cycles regularly. - Contribute to a pension plan or a provident fund
If you are an entrepreneur or a businessperson who doesn’t has any access to company or government pension, you must consider setting up your own retirement account. Your retirement may be many years down the line, but is advised to get a early head start and save and invest for your future. - Get insurance
It is advised to protect yourself and your assets from any type of unfortunate incident. You can do this by buying an insurance policy that covers your travel, medical bills and health, loan credit shields, life, etc. - Make sure your will is up to date
If you are yet to create a will, set an appointment with an attorney who can help you create one. And if you already have a will, make sure that you review it and update it as and when required.