5 reasons why having a strong personal financial plan can make you financially fabulous!
Month ends are perhaps the happiest times of our lives. That little ding on your phone that tells you you’re good to go for the month! We all know the happiness of earning. But getting wealthy isn’t that easy (believe us, we wish it were!). It’s all about managing that money well and watching it grow over time.
But first, let’s start from the beginning. When we talk about personal finance, you’re probably used to referring to the term as financial management for yourself and the fam. But it doesn’t stop there. There’s a lot more to that as it comprises how you manage your money through expenditure, investments, and savings, considering various life events and risks. That includes banking, budgeting, saving up for a career break or even for retirement.
Now, why is personal finance important? We’re glad you asked!
Get your money’s worth!
Money goes beyond what we all think. It is not just about netting up expenses and savings and voila! A heap of money will magically appear! Think about more than that. Your money needs to make money for you. If you want to reach a particular financial goal, how much will you have to save? For how long? What is the percentage growth on that? These are some good questions to get started with!
Don’t let your finances control you.
If you don’t plan for your income, you will end up overspending or spending on unnecessary things. And believe us when we say there’s never enough money in the world. Whether you are earning ₹20,000 or ₹2,00,000 a month, without systematic financial planning, it can all blow up in a puff of smoke. With a proper financial plan, you will be able to manage your income effectively.
Budget, spend and save. Notice something wrong?
Most of us get this wrong when in fact it needs to be budgeting, saving and then spending. A personal financial plan gets you into that groove. We’re talking about flexing that money. Personal financial plans help you demystify this and enable you to raise your standard of living. So living a better life doesn’t necessarily mean living a more lavish one. Just having that peace of mind can help you go a long way.
You need to look out for your family!
We all want to provide for our family, especially during volatile times. That’s what contingency plans are for. Whether it is your peace of mind fund, retirement fund or career break fund, just making sure that you’re covered in the event of an emergency is a good place to start. And make sure these emergency funds are easily accessible! E.g. the home you own can’t be your emergency fund, because converting it into cash can take a loooong time. Get expert advice Yup! This helps. This actually helps. Whether it is a session with an expert advisor or attending workshops to help you understand money better, each step is one step closer to that future. Financial experts have seen this all too well and know exactly what you’re going through. By voicing your concerns and talking about your goals, you will be able to get into the right groove of investing systematically in the instruments that will help you grow. What’s even more important is having the expert at your fingertips since all great financial decisions are all about good timing.
Bottom Line! Sounds good, but don’t know where to find a personal finance expert? We’ve got you covered here too! Basis First is an exclusive service that gives you access to financial experts and master tutors. Get 1:1 advice in sessions with the Basis Coach, stay in touch with your experts with the Basis Concierge and unlock access to Basis Masterclasses. It’s all right here! Join the waitlist!