Here in this article I will be sharing with you 10 best financial planning tips of 2017-2018. It is very important to plan your investment. Because when you will plan for your future then only you will be able to live a better life in future.
Expert Financial Planning Tips:
1. Start SIP
Starting SIP is one of the best financial planning tip for you. One of the best advantage of SIP is, it invests your money in the market irrespective of whether market has gone up or down. Since our investment decisions are often governed by our emotions. When market goes down we start to panic and due to fear we try to exit market. This decision can be right in some situation but not always.
SIP controls your emotions and invest your money in the market against your will. Even when the market is down. Then few days later when market will go up you will automatically start enjoying the benefits and returns.
2. Maximize Your Retirement Savings
It is always better to plan your retirement savings. You must invest wisely in your retirement scheme so that you get more benefits in your future. For maximizing your retirement savings you must invest in schemes with offers tax benefits.
Also you can apply for higher amount of transferring of funds from your account to the retirement saving account. You can also apply for automatic transferring of funds so that the money is transferred even if you wish to avoid transferring of funds.
3. Reallocate Your Investment
Third financial planning tips is reallocating your investment. It is very important to timely reallocate your investment depending upon the market scenario and trends. As the market keeps on changing hence it is very important to walk with the changes in the market. In simple words, when you would have done investment then you would have done allocation of your funds on the basis of the market trends.
Like if at that point equity was doing better so you would have invested more in equity lets say 70% in equity and 30% in debt. But if you will see your investment after an year you might see that the returns on equity are lower than the debt funds. So with the option of reallocation of investment you can invest your higher amount on debt then equity. Means you will now invest 70% of your fund in debt and 30% in equity to gain higher returns.
4. Invest In Long Term Schemes
One of the financial planning tips is to invest in long term schemes. No matter whether you are willing in invest in share market or in government bonds or securities. It is always advisable to buy a plan and stick to it for longer time frame.
When you will invest your funds in a long term scheme you will even get tax benefits. Not only tax benefit but by investing in long term funds you will even receive higher returns. In-comparison to the returns that you will receive by investing in short term funds.
5. Carefully Manage Your Debt
It is very important to manage your debt. Debt could be in any form whether credit card loan, house loan, car loan, education loan. One thing that one can do is to minimize your debt is to reduce the usage of credit card. Or you can even avoid using credit card. Since credit card gives you an option to buy things today and pay it later.
But let me tell you this is not a wise step because when you will receive your salary next month more than half of your salary will go for pay your dues. Another way to manage your debt is you should payback that debt first which is most expensive and charges highest rate of interest and so on.
6. Review Your Insurance Coverage
It is very important to review your insurance coverage. Since with time the needs changes hence it is very important to review you insurance policy. With time it is very review that the reason for which the policy was purchased is your need even now or not. Several time you even need additional coverage on your existing policy if needed you can even apply for umbrella coverage.
7. Education Re-Financing
If you are the one who had taken educational loan then here is an option for you. Since the interest rates keep on changing with time and your interest rate on your education loan might have increased over the time. Now to repay this loan you can simply take an another loan at a lower interest rate. You can use this loan to repay your educational loan. Later you can payback the other loan easily since the interest rate on that loan is lower.
8. Investing for Your Kids
You can even invest funds for your kids future. With time the things are getting expensive so is the education and medical expenses. Hence you can invest your kids so that when they go to college you can easily pay their fees. Or you can apply for insurance policy for your kids if they have some disability so that you can easily treat them.
9. Invest in Tax Saving Funds
Well another financial planning tips is to invest in tax saving funds. There are several schemes launched by the government of India PPF, LIC, National Saving Certificate, Pension Funds etc. Not only this even if you invest in share market then if you will invest for more than 3 years then also you will receive tax benefits.
10. Take Expert Advise From Financial Planner
Lastly, taking expert advise is last financial planning tips. Taking advise from an experienced person is never a bad idea. If you are going for financial investment then it is always advisable to take advise from an expert. Instead of ending up committing mistakes it is better to take financial advise. There are several financial adviser who charge heavy fees. While there are even several advisers who provide free expert advises. Now its up to you like what type of expert planner do you need.
But if you ask me then I would suggest you to go for payed financial advise. Since when you go for free advise the advisers push a policy or investment option in which they receive high commission. And it might be a bad advise for you so you should go for payed financial advise. Since they will provide you unbiased advise.