Financial planning

TOP 11 RULES OF MONEY EASY FINANCIAL PLANNING (golden rule)

Introduction

We recommend reading our blog post, “The 11 Rules of Money Easy Financial Planning Follows,” if you are interested in learning more about financial success. It will provide valuable tips and advice on creating a plan that will benefit both your personal finances and those of your business. If reading this article helped you think about how to use money and budgeting for financial success, great!

 

11 Rules of money easy financial planning

1: Build The Safety Net First

Money easy financial planning To know how much money you need to have. According to the experts, you should build your safety net first. Claim insurance, SIP, Mutual Fund, Liquid Money

Who will protect your income and assets when market volatility occurs or in case of a job loss. Building a safety net is one of the most important things we can do to protect ourselves from unforeseen events.

“This will act as the foundation for an individual’s future success.”

One of the essential jobs in any society is to provide for its citizens. We must build our safety net first before we worry about other issues such as education, healthcare, and housing.

The tone should be calm and collected while speaking with a business-like demeanor.

2: Use Credit Card Wisely

 Money easy financial planning main important rules for using credit card wisely.

CREDIT CARDS TO HELP YOU STAY ON THE RIGHT SIDE OF THE SWORD.

  • First, no budget, no credit cards. They are a tool to make our lives easier.
  • The second rule goes right along with this constantly, pay the monthly balance in full. Interest and fees are the devils, and the only way to avoid them is to pay the monthly balance in full.
  • The third auto payment is your best friend. You have got a lot going on in life; let your credit card payment happening entirely each month automatically to avoid missing a payment and getting hit with fees
  • Fourth is to review your spending in real-time to make sure there are no mistakes or fraud on your account. Don’t wait for the statements; they’re old news.
  • Fifth is to use the credit card for everything you can in your budget. Again don’t inflate your lifestyle, but maximize the use of your card to get more rewards and build more credit.
  • Six is if you get hit with a finance charge or interest expense, pick up the phone and call the credit card company; as long as you’re not a repeat offender, you’ll likely work with you and reverse the charge.
  • Seventh is lost on your card. Report it was stolen immediately. Even though your responsibility for fraudulent spending is limited. Don’t wait, and it can make a mess of your cash flow and credit that will like time and energy to clean up.
  • Eight is you know those tip and complete lines that come on receipts where you’re not tipping. Put something on them. Zero line dash whatever but don’t leave it empty and sign it because that’s a blank check.
  • The Ninth is there is no reason to get a card with annual fees. There are so many options out there and until you’ve mastered these rules, stick with the no-fee cards.
  •  The last rule is a two-parter
  • First, if you’ve got old cards, don’t keep them, cut them up, and throw them in the trash. For the extra paranoid, throw the pieces in multiple trash cans, on multiple trash cans, on multiple days in different trash zones.
  • In the second part of rule 9, if you can’t follow the first 9 rules, forget about it .you’re not ready for a credit card and just cut it up .it’s too easy to fall to the dark side of credit and the benefits. Just worth it.

Read Also: effect multiple credit card score

3: Focus Earning More

The best way to get ahead financially is by earning more money easy financial planning

It’s been proven that the fastest and easiest way for you to accumulate wealth consistently is through increased earnings, so make it your top priority. The first thing to focus on when it comes to earning more is your work performance. So it would help if you did everything possible to not waste any resources at work for increasing revenue or profit margins.

More Money
More Money

4: Create Management System

Money easy financial planning is so easy first of all create management system. many people have a hard time handling their money. It is essential to set up an appropriate system for your needs, but it can be not easy when you are unsure what works best for you or how much information should go into the plan. The following article will help guide you in creating and maintaining a comprehensive financial management strategy that ensures success throughout life’s transitions.

1. What are your financial goals?

2. What are your current spending habits?

Do you want to save more or spend less in general, and if so, how much of each would be ideal with which purpose in mind (i.e., saving up for emergency fund vs. shopping temptation/impulse buying behavior these days that make it hard not having excess cash from time to time as well as what needs priority over others at times because resources may run thin quickly depending on circumstances we face every day?)

5: Retirement planning

Money easy financial planning is the main important part is retirement planning .

Diabetes, hypertension, and heart attacks are more likely to occur if you follow a sedentary lifestyle. Healthcare costs are increasing each year. Additionally, in the absence of a social security net, you need to be able to get your costs covered on your own. In this way, your retirement planning might be delayed forever again, just like many others think it is too early to begin planning now.

If you fail to plan your retirement properly, you can never quit your job. How does this work? Simple – the earlier you initiate, the greater your chances of retiring richer. It is due to the “magic of compounding. If you take advantage of this, you can even retire earlier and lead a stress-free life. During the retirement planning phase, it is essential to clarify a couple of points, such as choosing the age at which you would like to retire To meet your estimated expenditure after retirement. you have to estimate the amount of money you will need each month.

For example, say that you are planning to retire at the age of 60, and you estimate your expenses after retirement to be $50,000. Every month for 30 years, to accumulate a corpus of $1 crore. You can easily calculate your retirement contribution using the retirement calculator.

6: There Is No Lack Of Money

Money easy financial planning is so easy You need an idea and take an idea. There is no shortage of money because every person has a thought. Money is actually there, but some people do not have an idea to create a new opportunity for money. Always create a new idea and take it. 

7: Profitable Expenses

In order to make sure that a certain expense qualifies for tax deductions, good money easy financial planning skills are required.

When purchasing goods or services, it’s important to be aware that each item or service appears in one category, such as entertainment, transportation costs, clothing purchases, clothing dry cleaning, etc.

When you follow financial planning steps, you can always turn a profit. Whether it means paying off debt or investing in stock—these are all excellent solutions for building wealth over time.

of 60, and you estimated your expenses after retirement to be $50,000. Every month for 30 years, to accumulate a corpus of $1 crore. You can easily calculate your retirement contribution using the retirement calculator.

8: Understand need and greed

Money easy financial planning is s easy Everyone has doesn’t know what a need. People always see other People’s things and don’t understand the necessity of these things.

People don’t know what you want. A person doesn’t need a car but wants a car to show our status.

so people understand the differences between need and greed .need is necessary, but greed is not necessary

9: Ensure your risks are covered

There are a number of risks you must be aware of. These risks can potentially lead to loss of income and place you and your dependents in a financial quandary. 

  • Insurance is as important as investing is for preserving wealth as investing is for accumulating wealth. Unfortunately, most people confuse insurance with investing and investing. They buy a ULIP and feel at ease.
  • Yet, they end up paying a lot more for this type of insurance plan, which is inadequately insured. In place of this, a term insurance policy is a wiser proposition to buy.
  • You will get coverage from a life insurance policy at a reasonable rate despite the high risk. You should not expect any returns from the sum insured. Ideally, the sum assured needs to be at least 10 times your annual income.
  • Health insurance with a good price is essential in addition to life insurance. It will enable you to afford quality treatments at affordable rates. Don’t end up paying much more for less.
  • The easiest way to find the best life insurance policy for you is to compare policies online.

10: You should plan your taxes.

Money easy financial planning you should your tax planning, you analyze your finances from the perspective of tax efficiency so that you may optimize your finances as much as possible. You are attempting to achieve the highest tax reduction by maximizing the various tax exemptions, deductions, and benefits.

You should always be aware that even though tax planning is very legit, you ought not to be engaging in tax evasion or tax avoidance. Tax planning can involve making use of a variety of tax-saving options. 

For maximizing Section 80C deductions, investors should invest in Equity Linked Savings Schemes (ELSS).

This scheme is the shortest and most straightforward option available as a tax-saving option on Section 80C. You can save close to 45,000 and receive up to 1.5 lakh tax deductions. This diversified equity fund can also allow you to reach financial goals through investment in the equity market.

11: You are managing your debts wisely.

Unless you plan for debt management, you may end up borrowing new loans to pay off the older loan. If it gets out of control, then you may fall into a vicious debt trap. Your critical life goals may be distracted, and even your retirement could be delayed.

Knowing how much you owe each one is important. You ought to make a schedule to pay them off. You should start with the most expensive one if you have a lot of debt. Credit cards have a reputation for causing financial stress. Pay off your credit card balances when they are credited each month. Don’t be distracted by the temptation of paying off the minimum balance. You have no choice but to use the credit card only in case of an emergency. Otherwise, the interest will eat out all your savings.

Always keep debt as a last resort. If you want big-ticket loans, look for a portability option. If you are borrowing money, you may be able to transfer to another bank offering cheaper interest rates. This will save you a lot of money going out in interest.

If you need money, do not take out loans for assets that are depreciating. Furthermore, personal loans such as personal ones should be avoided. Instead, save up and make a corpus for your goals. This way, you won’t fall into a debt trap.

FAQs

What are the 3 guiding principles of money?

Money management’s three rules Keep your expenses within your income.
1.You must always prepare for the future.
2.Increase the value of your money.
3.Your banker provides you with some of the most helpful money management advice

Which is the best rule of thumb for money?

The 50-30-20 rule is a popular way of keeping track of your income. 50% of your income goes towards necessities, like housing and bills; 30% to wants, like dining and entertainment; and 20% towards financial goals, like paying off debt or saving for retirement.

How do money rules work?

Here are some money rules you need to know by heart.
1.We should always spend less than we earn, but this should not be overlooked because there are so many easy ways to access debt and credit.
2.The best way to learn is to make mistakes.
3.Make sure your bills are paid on time. 
4.Make a Money Plan. 
5.Establish a need for emergency funds. 
6.Don’t take on debt.
7.Get a handle on your finances. 

What are the best ways to become rich in five years?

1.Be Educated on Financial matters.
2.A Wealthy Mentor can help you.
3.Learn how to manage your finances.
4.Keep an Eye on Investing.
5.Get In Touch With Rich and Wealthy People.
6.More than one income source.
7.Faster learning.
8.Stay healthy.

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Conclusion

Our articles gives you great tips and tricks for making sure your money works for you. You’ll also find a plan that works for your budget. You may be surprised by how much difference it makes when you follow this guideline.

Payal Sshrotiya

Payal is a financial writer at Wealthbooking and Helpingdesi. Her work featured in Quora, Medium, and many top websites. She gained huge followers in Quora and Linkedin in a very short time. Payal is the one to contact if you want to know anything about Linkedin. Payal graduated from Rajasthan University with a master’s degree in Finance HR. When not writing about the Financial market and ruminating over competitive advantages, she enjoys spending time with family and cute nephew Gannu& shubh

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