Are your still wondering how to start your savings plan or have you failed to stick to your plans made earlier? Here are some tips to stay focused on your financial goals.
Step 1: Make a budget
First, you should draw a budget with at least 30% allocation for savings. A properly planned budget will show how your costs add up and also to identify and cut avoidable expenditure.
Step 2: Prioritize saving over spending
Try prioritizing saving over spending for wealth creation. Lock your savings and investments first before you start any of your monthly spends. Set standing instructions with your bank for your investments like SIP or recurring deposit.
Step 3: Link investments to goals
By knowing what you are saving for, and how much time you have to build the corpus, you can pick the right investment for the best returns.
Step 4: Control your debts
Always keep a tab on your debts as often one debt leads to another when you don’t have a proper repayment plan in place. Avoid borrowing money for things that can wait.
Step 5: Never forget insurance
Step 5: Don’t forget insurance
Don’t forget to buy or renew your health insurance and life insurance. You can easily lose your savings in a blink of an eye during illness or hospitalization.