how to manage your expenses and become rich? Easy simple financial planning for beginners

We all know that proper financial planning is needed to achieve our financial goals. You must know after 10 or 20 years how much money you need. So you must prepare you savings and investment plan now to meet your long term financial goals.

Most of the people don't have any financial planning as they think it is very complicated and they leave it,and let it happen the way it's happening.

Just saving money in bank account and taking insurance plans does not help you meet your financial goals,infact this is the main reason you lose lots of wealth creation opportunities.

So I will help you to take your financial decision so that you don't need to be worried about your future goals just in 5 easy financial planning method. It is so easy that it will take your only few minutes. Before starting about the financial planning my focus is to make it simple and effective for you. 

   

•    Savings:- you must follow one thumb rule, that your monthly family expenses for 6 months should be in your savings bank account. So, if you lose your job for any reason you will have atleast 6 months to find a new job. 

•  Loans:- there are two types of loan. 1.Good loans and 2.bad loans. Good loans are like home loans, in which you pay 7-8 % interest, which is good but bad loans are personal loans,in which you are paying 12-15% interest,so it is better to write off your bad loans as soon as possible. And you should write off all high interest EMI. 

•  Insurance:- most confusing plan is to take a insurance policy. Which insurance policy you must take? Answer is simple, if you have a family and they depend on you,you must take a life insurance policy for you only and a health insurance policy for all members of your family. I see people have lots of insurance policy like money back policy, endowment plan, ulips etc and 10-15 policy in their portfolio. So it's very confusing.  Just make it simple,take a life insurance policy if you are an earning member of your family and health insurance for all members of your family. If your childrens are not earning then you don't need life insurance policy for them. 

•   Investment plan:- so many investment options are available like you invest your money in stocks or mutual fund. Or you can invest your money in gold and real estate to diversify your portfolio. Let's find out which is best for you. If you have long term goals and you are on early 20's then you do not have much responsibilities like children education, marriage plan, then you must take some exposure in stocks and mutual funds. And You must consult with your financial advisor.
•   Next is gold,if you are taking gold for investment purpose then you should not buy physical gold as it will take making charges,you can invest your money in sovereign gold bonds. If you want to consult your financial plan you can contact me so I can give you best financial ideas.    

•      Retirement planning:- It totally depends on you how much money you need. How you want to live your life after retirement. It totally depends on your risk profile. Just take 3 mutual funds, if you don't have any idea about stocks and must invest in sovereign gold bonds. And you can take home loan. It is just that simple. 

• So, you have money in your savings account and have a life insurance ,health insurance and invest some portion of your money into mutual funds and gold, that's it, you have completed your financial planning. For more updates click this link http://mudrainvest.com