How healthy is your personal finance?
First step on the road to financial Success is to know where you stand.
A recent statistics has found out that 75% of people don’t have a clear and accurate view on their whole financial picture and most importantly 50% people are not confident about will they achieve their financial goals.
- Do you save atleast 10% of your income?
Pay Yourself First – Most Famous phrase from the book – Richest Man in Babylon.
Before you pay off your bills or spending – Save and invest atleast 10% of your income for Yourself.
Set aside this money for your Retirement & for your Financial Goals.
- Do you have an Emergency Fund?
Have your set aside 6 Months of your House Hold Expenses as an Emergency Fund?
Having an emergency fund will soften any financial Crisis to deal with. Remember Murphy’s Law – If something has to go wrong – Will go wrong. Having enough money for 6 Months can pull you from anything that life can throw at to you.
- Do you accelerate your debt payments?
First, do you know the exact amount of debt you own (Principal Outstanding for Credit Cards, Home Loan, Business Loan, Etc….. as on today) and the actual Interest Rates?
Sometimes it is absolute necessary to borrow the money such as, Education, Car or Home. But always accelerate their payments.
Power of compounding can work against you, by accelerating the payments of all your debts, you can minimise the interest.
- Do you have record keeping system for your spending?
I know, this is always a pain to record all our spending. This is an important part of your Financial Growth. Remember it is always not the size of the income that will determine where you will be in 20 Years, It’s how you spend it.
- Do you know your Net Worth?
This is a simple process of taking your assets and subtracting your liabilities. In simple terms it is what you own and what you owe. Reviewing your net worth statements over time can help you determine where you are, and how to get where you want to be.
- Do you live in within your budget?
Is this the word budget makes you shy away? Do follow these steps and keep your budget within control
- Determine your Monthly Income
- Calculate your Total Expenses
- Categorise your expenses into categories
- Evaluate your expenses
- Stay within your budget
Habits and Choices are very important to achieve personal excellence and Financial Success.
Personal Finances thumb rules are important to achieve Financial Success.
To create a personalized plan and investments – Reach out to me @ 9841058689.
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Helping people to Increase their Networth and Wealth.
Equity Fund Manager | Wealth Consultant | Author
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