Here Are The Best 20 Financial Tips For 2018
Saving your money and investing it right is the key to achieving your financial goals this year!
1. Avoid buying property on loans as it eats most of your earnings unless you have a clear plan for its repayment. It’s important to monitor cash flow. Though the house will be your asset, your liability will be much more.
2. Start a SIP at a very young age. Try to save at least 15–25 % of your earnings.
3. Avoid buying a car unless you use it every day.
4. Do not let this sentence scare you. “Mutual fund investments are subject to market risk. Please read the offer documents carefully before investing”. Most people avoid investing in mutual funds just because of this one warning. Yes, there is a market risk, but look at the history and growth of mutual funds.
5. Try having a simple wedding.
6. At least 20% of your wealth should be liquid so you can utilize it when necessary.
7. Considering inflation, you are actually losing money if it is in savings bank account. Do not keep huge money in savings bank account.
8. If you invest in stocks, pay due attention.
9. If you invest in stocks have a separate account for delivery investment and Intraday investment. It is easy to monitor this way and also makes tax calculation easy
10. Do not have a belief that property and car make you rich. Its what you save and invest, that is important.
11. Never invest in insurance for returns. Insurance is not an investment option. It is a risk management tool.
12. Never use credit cards for lavish spending. Use credit cards intelligently and for ‘need’ not for ‘want.’
13. Cancel all credit cards before you die. Or inform the family about all your accounts, credit cards, loans and saving now itself. Even a small residue will cost your family much.
14. Invest in yourself and then on other investments.
15. Always try to balance your earnings with your savings first, then on spending and loans. Never take unnecessary loans. Always have a reserve and utilize them and unless no other go never take a loan.
16. Always have a plan for future events in your career, life, spending, and finance.
17. Always have a reserve on your savings for contingency and urgent situations.
18. Your personal life and health are the most important investment. Do have a regular health check and do healthy workout every day. Stay healthy and live happily.
19. Always remember death can come anytime…so please do buy adequate term Insurance if you have dependents.
20. Prepare a Will. It may avoid unnecessary fights after you die.
We hope that all the above-mentioned advice would help you in long term. We would simply suggest you Think & Act smartly.
