Stay ahead of uncertainties and emergencies with a periodic review of your money game.
Money is arguably one of the most important tools for survival. Having a sufficient monetary cushion gives us a sense of security. Not only does it let us pursue our aspirations and realise our dreams, but it also lets us stay prepared for emergencies. Hence, it is crucial to create and execute a financial plan. It ensures our well-being and that of our loved ones.
However, in addition to sticking to a financial plan, that plan must also be reviewed at regular intervals. This post will explore the situations when you must re-evaluate your financial plans.
Got a hike?
A hike in your pay is guaranteed every year, be it a new job or an appraisal. This hike may seem like extra money to fuel all of your wants in one go. Avoid the temptation. An increase in your pay doesn’t mean it should lead to an increase in your expenses.
As your income rises, more effort should be put towards saving the extra money you earn. Put these extra savings into diversified investments. Create another SIP, buy that stock, or invest in sovereign gold bonds. The more you channel your money towards different investment instruments, the more wealth you create.
Additional Reading: Easy Hacks To Master Your Money This Year
Planning for your goals!
Everyone aspires to achieve and have a better life. A set strategy in place will allow you to manoeuvre through life. As we grow, our priorities change and get bigger. Aspirations and desires do not stop there.
You may want to buy a small car, so you start saving for the down payment. But as your income grows, you may change your plan to buy a bigger car. And this is where your diversified investments come into play. The returns you earn on them will help give shape to your dreams. There is nothing wrong with aspiring for more because a timely review of your finances will make sure that you’re prepared for everything. Keep increasing your investments and watch compounding weave its magic.
Additional Reading: Pro Tips: How To Secure Your Child’s Future
The big moments of life!
There are events which change the course of our lives. Be it marriage, the birth of a child, or their education. When these events take place, they call for a careful review of your financial plans. You must – because when these events take place, it’s not just you who is involved.
Your plans need to include your family too. Because beyond your investments, you now have insurance needs too. From having individual cover to planning a larger insurance policy that covers your whole family, taking big steps in life requires a shift in priorities.
Additional Reading: Tips To Take Your Health Insurance Policy To The Next Level
Big purchases
These are not the purchases you make at regular intervals. Typically, home purchases top this list for most Indians. Home Loans create a large cash flow issue in one’s financial plan. So, it is necessary to revisit your financial plans when deciding to make big-ticket purchases. Wise allocation and handling of finances will ensure that you and your family remain adequately cushioned.
Additional Reading: 5 Important Personal Finance Lessons To Teach Your Kids
Medical emergencies
Uncertainties don’t come knocking, so your financial preparedness is key to lessening the impact of any medical emergencies. Yes, Credit Cards and Personal Loans can always be opted for in the case of issues. However, a thorough and careful review of your financial plans can help go a long way. Regularly check whether your health, life and term life insurance coverage are adequate.
While you review your finances and the planning around it, we want to make sure that you are adequately prepared for all sorts of urgencies. Check out Personal Loans on BankBazaar with the convenience of zero documentation, instant approval and same-day disbursal.