Financial Shots At No Cost
It is so unfortunate that even though we spend half of our lives working long and extended hours to make our ends meat, yet we are scarcely able to take out time to manage our personal finances. The need of the hour is to not only earn, but also allocate our time in managing our money and creating a sweeping change in our mindset.
Improve, boost and enhance your financial understanding:
We had studied, researched and analyzed various subjects and topics like mathematics and science at school, but we were never taught about personal finance.
PERSONAL FINANCE is a subject matter and topic you ought to have knowledge of, wherever you go in life. Hence, improving financial knowledge is the first step towards financial well- being.
Create an unexpected emergency fund:
Life is full of uncertainties and it is often challenging to incorporate such uncertainties in our financial plan. Emergency crisis funding not only helps in fulfilling the financial needs during uncertainties but also safeguards us from mental disturbances which may arise due to financial crisis. Our emergency fund account should be equal to an amount of our monthly expenses plus our loan EMI of 4-6 months and yearly insurance premium.
Lessen your loan burden:
We should review our existing loans and make certain that all loans help us in raising our net worth (assets- liabilities). In case they do not, we should plan for repaying the same. We should also find out ways to reduce our interest burdens.