Best 3 Tips For Money Planning | Personal Financial Planning Tips

Written by
  • Latheef R.
  • 1 year ago

3 Tips for Money Planning| Personal Financial Planning Tips


Personal Financial Planning is such a topic of our life that everyone should understand in today’s time. How will our future be in terms of money, it depends on how we are doing our personal financial planning today.

One who has learned to manage money has a lot of guarantees that he will be successful and happy in his life.

 

Personal Financial Tips


I was thinking for a long time that apart from success and motivation, you should be given some Personal Financial Planning Tips.


Personal Financial Planning Tips in 2021


Today I will give you three such Financial Planning Tips which are also Personal Finance Basics i.e. if you are going to start doing Personal Financial Planning then these tips will act as a strong foundation for you.

Please read these “Personal Finance Tips” carefully which will give a perfect start to your “Personal Financial Planning” and you will be able to do a good “Financial Planning in 2021”-



1- Pay Yourself First



Pay Yourself First is such a rule that can speed up your financial planning. According to the Pay Yourself First Rule, whatever your earning is, first of all, you should save for yourself and spend whatever is left.

Whatever money you earn, you divide it into two parts. You spend one part and you save the other part. Pay Yourself First Concept tells you that out of whatever you earn, a certain amount that you have already decided, first put it in Saving and then spend the remaining amount.

For example, if your Earning is Rs 20,000 per month and you want me to save 20% of that money, then the rule of Pay Yourself First tells you that you should put 20% of your earnings i.e. Rs 4000 in your savings first. Give which you can also invest later. And take the money left (Rs 16000) into your expenses.

While what people do wrong, they spend the first month and save what is left, this method is wrong. Pay Yourself First Concept tells you to “save first, then spend” and not “spend first, then save”. With this pay, you will be able to save a certain amount of money every month very easily.

The concept of Pay Yourself First was first seen in the book The Richest Man in Babylon which was later explained by Robert Kiyosaki in his book Rich Dad Poor Dad.

Friends, the rule of Pay Yourself First has made a lot of positive changes in my life. You must also adopt it for better financial planning.



2- Invest in Different places (Diversification in your Investment)


This method will help you a lot in personal finance. First of all, you save money according to the rule of Pay Yourself First.

But for better financial planning, you do not let your saving money remain like this. You invest this Saving Money in the right place.

Here the question comes, are you investing all your savings in one place or investing in many different places? Personal Financial Planning Tips advises you not to invest all your money in one place, doing so greatly increases the risk. If a loss happens then you will not be able to survive and all your dreams will be shattered.

Therefore you are advised to invest your money in different places. By doing this, the investment gets diversified and your risk is greatly reduced. If you lose in one place, then your money remains safe at other places.

For example, if you save Rs 4000 every month and invest all the money in one mutual fund, then doing so greatly increases your risk. You have to diversify your investment here.

If you invest your 1000 rupees in one good mutual fund and invest 1000 rupees in another good mutual fund and out of the remaining 2000 rupees, you open RD of 1000 and you invest 1000 rupees somewhere else. If you give, in this way you reduce your risk a lot by investing in different places.

share market magician Warren Buffett also adopts the same method. You must also follow this method.


3- Must Have More Than One Source Of Income


One of the very important tips of Personal Financial Planning teaches you that if you keep only one source of you’re earnings, then you will never be able to make a successful financial plan.

This will be because you are earning money from only one place. Therefore, if you will not be able to earn more money, then you will not be able to make more money-saving. And when you will not be able to save more money, then you will not be able to invest more money.

Therefore, you should adopt the path of Multiple Source of Income, that is, you should make ways to earn money from many places instead of earning money from only one place. For this, you should do that earning from your active income and for the rest of the source of income, you can take the path of passive income.

For example, if you work somewhere then it is a source of your income. Now you can do blogging along with a job or you can become a YouTuber. If you want, you can also start a small business. All these will be your other source of income.

You can earn very good money from these Multiple Sources of Income. Nowadays many people are becoming rich by adopting this method. You too can adopt this method of financial planning and move towards a better future.

Friends! How did you like these Best Personal Financial Planning Tips If you liked this article on “Personal Finance and Financial Planning Tips”, then you can share these articles.

 
 
 
 
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