Hello Readers!

Everyone has a busy life, a busy daily schedule loaded with many tasks to achieve. People hardly get a self-time in this busy schedule, ultimately the other important things of their life are ignored, like personal financial planning.

But you know, you can level up your financial planning, in simple 15 steps, you don’t need much time for this, but 1-2 hours of 15 consecutive days and your Personal Finance is planned. We have designed a 15-day action plan for you. Just one hour every day for 15 days will ensure that you are at the top of your finances.

Let us know about this 15-day action plan to boost your Personal Financial Plan.

Day 1 Step 1: Automate Your Monthly Bill Payments 

There are many important things, better say necessary payments that we have to do on a monthly basis like rent, electricity, Wi-Fi, cable bills and others. Paying them manually becomes a bit difficult as remembering all of these expenses with other necessary things, is not easy. This often leads to miss of any of these payouts and ultimately due on next month's expense. Automate these payments, it will reduce your burden and you can focus on the more important or interesting things.

Day 2 Step 2: One Bank Is Enough for Your Requirements, No Need of Multiple.

If you are also managing multiple bank accounts then its time to consolidate them because one bank account is all you need for your requirements. This will help you see all of your savings in one place and know exactly how liquid your money is. In case, you need more than one bank account then it is advisable, don’t have more than two accounts (possibly in the same bank), if more than two, it will more hassle.

Day 3 Step 3: Reduce the number of Credit Cards.

More the number of credit cards, more you are prone to shopping, and more you will be on debt to be paid back that too on time. Thus, it is advisable not to keep more than one credit card, if much required then can keep two cards but not more than that. Also, having only one (at most two) credit card helps you pay off the debt every month on time and saves you from the debt trap.

Day 4 Step 4: Calculate your Debt. 

Calculate your debts, whether from credit cards, any kind of loans, or debt to other institutions, in order to evaluate your personal net worth. This will show you how much financially fit you are. Create your list of all outstanding bills, calculate how much you owe, then calculate how much time you will take to pay them off. Clear all your debt as soon as you can, you get yourself more financially fit.

Day 5 Step 5: Get the right health insurance for you and your family.

Once you get to know your financial worth, now it’s time to ensure yourself and your family with a good health insurance policy. If you have one, then do analyze that you have the right health insurance plan in place. You must be aware that getting insured with health insurance also gives you tax benefits.

Day 6 Step 6: Build your Emergency Fund. 

After securing your health, do create an emergency fund for your emergency needs. Cushion yourself for your rainy days with Rs. 1 lakh at least. Make sure that you invest this amount in liquid funds, and do not disturb, for random expenditure. Creating an emergency fund should be your desire, as it is essential for your rainy days. If possible, save more to ensure you have four months of pay saved up in your emergency fund.

Day 7 Step 7: Get your family members aware of all your investments and wealth.

It is a must for every individual to communicate about all their investments, health insurance policy, life insurance policy, their wealth, with other members of the family. Make sure your family always knows where all your money is. This will help them access it, in case if you are in a difficult situation and cant access them.

Day 8 Step 8: If you have dependents, insure them with a Life Insurance. 

Do not forget to take life insurance with an appropriate cover, if you are the sole breadwinner of your family. A good rule of thumb is to insure for 300 times the monthly amount you need. Stay insured, stay safe.

Day 9 Step 9: Time to plan your tax for the coming year. 

 Now it’s time to focus on getting optimal usage of your income. Plan your taxes or better say save your taxes for the coming year. You can do this by investing in ELSS funds to get maximum benefit on your investments, as compared to other tax-saving instruments.

Day 10 Step 10: Learn About Inflation.

Learning about inflation becomes important in case if you are planning your long-term investment in equity mutual fund. It helps you take proper financial decisions. Investing in and withstanding the volatility of equity becomes easier when you understand what inflation is.

Day 11 Step 11: Do not worried about a downturn, know what you can do. 

Smart people do not get panic when the market starts showing a downturn. Volatility is the market’s nature and it will show. What matters is your readiness to handle either. Believe and follow your investment strategy, and still if anxious consult your financial adviser.

Day 12 Step 12: Learn how to create and decide on financial goals. 

Creating financial goals, then deciding between multiple goals, and the sequence to save and invest for them is an essential skill. This skill should be learned for achieving yours and your family's dreams.

Day 13 Step 13: Analyze different asset classes and learn the objective they are meant for. 

Before you start investing in your goals, learn about the different asset classes in mutual funds, and their investment strategy. Then pick out the best suitable funds for your goal and start investing. Knowing about asset classes will help you in choosing the best funds for your multiple goals.

Day 14 Step 14: How to analyze growth rates and investment returns. 

After you start investing, now it’s important to know how you should analyze your investments or portfolio. Before you invest, you must know what your requirement from your investment is. This will help you decide what to invest in and your return expectation from that investment.

Day 15 Step 15: Retirement Planning. 

You have a plan for your present and near future, but it is also essential to plan and think of retirement. If you haven’t thought of it yet, then you've got to start right away and start putting money aside for your old age. Better start investing for your retirement days in an Equity mutual funds, you will get good returns, that can also combat the increasing inflation.

The above 15-day action plan will help you boost up your Personal Financial planning. The money you invest well will help you enjoy the small things of your life with a peaceful mind.

For any kind of query, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.

Happy Investing!

(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).