Myths about Personal Finance

Personal finances

Money and money matters are of concern to all. Hence, planning for it is much required. Managing the available financial resources is of utmost importance and hence researching for probable solutions becomes mandatory. Understanding how to channelize your money helps to define the success of your short team as well as long term goals. You are likely to invest than waste if you know how to utilize your finances correctly. A bright future is dreamt of by everyone. So financial planning comes to the rescue and helps you to keep a record of where and how the money is being used.It also increases your ability to foresee any unwanted circumstances and be prepared to tackle situations of emergency.

Investing in mutual funds or other financial instruments like SIPs are a great way to male and save money. Imitation often leads us to difficult and irreversible situations which one must avoid. One must select the financial instruments carefully after reading related documents and then decide which is the best fit according to taste, need and preference. They must ensure a great return on investment in the shortest pay back period so that tracking the growth and reaping of benefits are executed systematically.

Generally people fear and act apprehensive when it comes to sharing or communicating on money matters as they feel they may lose important information in the process. To the contrary, a tax advisor or financial consultant can be the best person to guide you through. They are well informed about various financial instruments, offerings and products in the market and can advise you to select the appropriate ones based on your short and long term goals. They can help you take rational and informed decisions on borrowing, lending, investing or buying equity.

READ ALSO:  5 Reasons Why Selling Old Stuff is a Clever Idea

All things expensive are not necessarily the best. Just because you pay a higher amount doesn’t guarantee you your rational and justified choices. Hence, analysing current market trends, reading documents in depth and evaluating each product based on its merits and demerits may help you in investing your money judiciously while reaping the benefits at its maximum. Sometimes, for a lesser amount as investment the returns and benefits tend to out do our expectations and that’s what we want at the end of the day

For some things in life there is no defined limit. In this case, we are referring to take steps towards financial planning. It is though highly recommended that one starts early in life so as to not be guilty at a later stage. With money becoming more and more important and crucial with the increasing needs, demands and situations in life. Taking small steps can lead to reaping greater benefits in the long term. For eg- invest in buying a small property than spending on an expensive sedan. You may choose to rent your apartment or flat that is currently not inhabited. Invest your savings in acquiring a suitable health insurance policy than spending on clothing or unjustified and exorbitant lifestyle. Try to use a credit card and enjoy lower interest rates and better borrowing capacity. Don’t choose to spend hard cash everywhere especially if it’s a big amount.

About the author

Mark Holland

Leave a comment: