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What is financial planning? 

Individuals construct a thorough strategy to manage their expenses and savings through financial planning, which is a methodical technique. This enables them to maintain an effective spending control system and achieve their financial objectives. 

Financial Planning Objectives and Benefits  

Financial planning ensures that the investor has the necessary funds to meet his financial objectives. This also keeps the investor informed about his current status and aids in forecasting his future demands through financial goals – whether or not he will be able to meet them! 

As a result, advanced data obtained through financial planning assists them in taking corrective action. 

• Examine and distinguish between their needs and desires, as well as what is essential right now and what can wait. 
• To fulfill difficultly and increasing financial goals, increase annual savings by cutting down superfluous costs, taking on an additional part-time job, or pushing spouse to take up a job. 

The holy festival of Holi brought an abundance of colors and cheerfulness, now it's your finance’s turn. We at Afinoz want to make sure your finances remain colorful too as your Holi was! A few fundamental practices that if you apply and practice constantly, can go an extended way in ensuring that you do not fuss about your future and your retired life. We’re here with some tips that will spread colors across your life by assisting you to plan your finances. Let’s dive into the best tips on personal finance!

1. Invest in your future

• For young adults who are fresh into their careers, managing finances can come up as a challenging task. Many may even discover the notion of retirement planning, as they are already fulfilled with joy and with managing finances for this. While this seems to be a reasonable action, it always culminates within the late realization that they have not stored-up adequate funds for their future.
• Begin investing as soon as you can, it is not so necessary. You can start with a small amount, and build up across time, while investing constantly, and you will see amazing returns potentially.
• Without starting the investment journey, you stand to lose a significant quantum of cash that you might have produced outside of your professional work.

2. Start investing money in SIP

• Mutual funds investments, including Systematic Investment Plans (SIPs) are plausibly the foremost effective way that functions in your financial favor. Whether it is your dream house or that long-awaited trip to Switzerland, a SIP not only facilitates you in allocating periodic savings but also in growing the amount of your corpus.
• Moreover, consulting with a financial planner, or a mutual funds agent, saves and makes tons of cash to you at the day-end, facilitating you acquire your future objectives.

3. Plan Your Taxes

• If you earn above Rs. 2.5 lakhs every year, it attracts tax towards you in India. While taxpayers have learned how to use the legal deductions to scale back their liabilities as much as possible, they often leave their tax-saving spending till late February.
• Not surprisingly, there are many who need to get over February and March like they’re broke. This takes place primarily thanks to they have not planned for their taxes beforehand across the year.
• Expenditures of Rs. 1.5 lakhs throughout a year which is also the maximum deductible limit u/s 80C, is certainly more convenient than spending Rs. 1.5 lakhs across 2 months.

4. Use credit prudently

Credit fits as the best example of a double-edged sword. When used properly and effectively, it stands out to be the best tool under your belt for your money problems.

A financial crunch takes place to everyone, stemming from temporary cash-flow issues or employment circumstances, or whatever else is the reason. It is important, albeit, so as to ensure that you are on the proper side of loans:

• Credit can turn your life easier to an appealing extent, but as long as you ensure that you pay off your dues within the time-frame. Always borrow from reputed financial sources, i.e., banks or online fintech apps like Afinoz which provide instant personal loans at rates as low as 8.65% p.a.
• Perform your study, and borrow in accordance with your needs. Aim to pay the debt off as soon as possible, in order that you do not pay unnecessary interest.
• Make use of flexible EMI options and avoid moneylenders that levy foreclosure charges.

5. Expend some finance time

• Possibly, the premier tip which got underrated and often given low attention. It is crucial that you simply resolve to expend some time to plan out your finances, and do not just roll in the hay once you got free time besides your other responsibilities.
• While an outsized part of our waking hours is spent in producing and expending our income, we often disregard the ‘managing income’ to some extent.
• Undoubtedly, it is not practical to meet our financial abilities with the trained professionals, but it is particularly possible to urge better at finances by spending a while and doing the legwork. Before you get intimidated by the thought of committing an outsized amount of your time for this project, know that this will be achieved just by inculcating the habit of paying a while towards budget making, researching, managing your portfolio, etc.

The Final Stroke

The aforementioned tips are only a few of the tips on personal finance across our blog. Although, we can assure you that if you apply even those, you will relish your life amazingly throughout the financial segment and it will get filled with abundant colors and happiness just as Holi brings every year.

Although, you need to make sure that you remain persistent and patient with the efforts on the aforementioned tips and you will then relish the sweetness of these efforts just we enjoy the mouth-watering delicacy of Gujiyas after investing time and efforts on it.

Moreover, if you are in search of instant fund assistance, there is no more looking out as Afinoz provides instant personal loans at attractive rates of interest. Not only this but you also get the feature to compare multiple personal loan offers of varying moneylenders including leading banks and NBFCs in one place.