Budgeting is necessary to have a planned future. The needs that are of personal nature or that seems important for routine functioning require allotment of a budget. Sticking to the budget is just a matter of self discipline. The best tip for financial planning is to look into issues that are of short term nature and also provide for contingencies. Health hazards take a toll on finance. Planning is required for sound investment and it is best to plough back the interest money into tax saving investments.
Educational finance is very much important and requires a lot of financial planning. Educational loans are a big boon to parents and hence they are able to provide financial assistance as per the expectations of their child. Planning for children抯 growth is not just about education but also honing extra curricular interest which needs to be stimulated. Summer classes or sports activity require a lot of financial and emotional investment.
The best way to plan for finance is like projecting the expenses with the existing income source. It is always better not to include income generated from investments like fixed interests or stray cheques that come from any other type of investment. A certain amount of money should always be allotted towards contingencies. With recession in its wake, there is slow down and the fear of job cuts looms large. In such a scene the budget is getting tighter and hence the area of entertainment has to be pruned in terms of spending.
Being too stingy about finance is not about quality living. There can be allotment for mandatory payments like loans which are automatically debited to bank accounts. Other balance can be utilized towards education fees, extra curricular activities, grocery needs, outings and also celebration. The budget surely gets tight but then cutting corners would be advisable. Inculcating the habit of saving in children is also good and the coins that go in the piggy bank are sure to make them understand the value of money.
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