It is hard work that pays you with substantial income, and you invest that income for you and your family. About 90 percent of the world’s population is unaware of their annual investments and are unsure how much money they are utilizing and what amount of money is being wasted. You are in your present, and you never see your future. Therefore, it is vital that you should be prepared and have something with you to help in the hard times.
Here, is a plan for you to keep a record of your annual expenditure that would enable you to save money and avoid further expenditures.
- Make income and investment proportional to each other
Income and expenditures are directly proportional. If you earn less, you invest less, if your income is more, you begin to invest your money on more expensive things and invest more.
Likewise, you should keep a check on your investments and think before you invest your money. Keep a proper written record of your expenditures; this would help you to stay in track and save money.
- Updating your balance sheets
It is necessary to understand your worth and your ability to manage expenditures. Check the last balance sheet for any debts. If there are any debts, try to invest less in the present time and clear the debts with the saved money. Do not be a money pourer; you do not own a castle. Make your existing investment in such a way that both your past debts and current needs are fulfilled.
- Retirement planning
When you are capable of earning, you should make your pre- retirement & post retirement planning. These both have to be checked every year. Deep analysis should be made, and it should ensure future security for long term.
- Estate Planning
It is one of the primary family aspects. It is imperative that you have a will. Without the will, your dependents would be bound with pressures and that would result in delayed payments. Your “Will” should clearly define the name of the dependents to whom the assets go and to whom not.
- Proper planning of money
It is an admirable thing you are earning, and it would be the best thing if you are saving your earning and making expenditures wisely. Some of the life events like marriage, having a baby are the life’s turning points. At that point, you are not only investor. A thorough analysis should be made at every instant, to prevent future crises.