Succeed in your Financial Planning with These 4 Thumb Rules

Financial Planning made Simple

While there is no shortcut to success, life has some easy ways. For example, some people focus a lot on their goals and ambitions. Now, of course, that’s a good practice. But what’s a goal without a plan? To fulfil the goals of your life, you need to do some financial planning!

With well-crafted investment planning, you can maintain a balance between long term & short term goals. Planning for your children’s higher education, their marriages, your 25th anniversary, oversees vacation, etc. give a satiating feeling.

Edelweiss Life suggests four financial planning tips to help you carve your future. So, set your targets, and get started by following some simple fundamentals of investment planning. It’s as easy as pie!

4 Ways of Efficient Financial Planning

• Make real-time goals

The first tip for your goal planning to be successful is to be realistic. Consider all the aspects of your present life while making your plans. These include your income, lifestyle, the standard of living, savings and investments.

Equally important are your health and life insurance requirements. In other words, make a budget for your goals. And then, make steadfast investment planning.

• Chalk out a timeline

Goal setting could be easy, but it should have a timeline too. For instance, you should know at what stage of life you’d like to buy a retirement home..

If you know what you aim to achieve when financial planning becomes a lot easier. Having done that, you can determine how early can you  invest in a life insurance policy, so that you don’t end up paying hefty premiums. The younger you are, the lower is the premium.

• Have a fallback option

Life can have its surprises for you. For example, any major illness, accident, catastrophe, etc. Therefore, it’ll be wise of you to have a financial backup in case of any contingency.

Usually, the first thing that gets hit is one’s income. So, secure it the moment you can. By availing of our Active Income Plan, you  can secure an additional regular income till age 99! Such kind of financial planning will help in case you meet any uncertainties in life.

• Allocate your assets well

Financial planning is no rocket science! You can do it with simple logical thinking that you’d apply during any daily activity. For instance, would you sprinkle salt on your salad on one spot or throughout? Naturally, you’ll sprinkle it all over so that it doesn’t taste too salty all in one gulp!

Similarly, for investment planning, it’s better to have  eggs placed in different baskets. You should choose to invest in multiple product categories. The act of parking your savings in a balanced way is called ‘asset allocation’.

A well-balanced investment portfolio can help you divide your returns and risks. It could have a variety of categories like term life insurance, unit-linked life insurance, health insurance, etc.

If you’re keen on making market-linked investments, be sure to invest in both equity and debt funds.

Key Takeaway

The goals of your life can be achieved when you have financial planning in place. You may not be a professional investment planner but remember that you are the planner of your life.

Thanks to technological advancements, the internet creates access to a plethora of information. You even have the ease of buying a plan online, which offers several benefits like discounted rates, maximum transparency, no hidden terms and conditions, etc.

So, do your research, devise a financial planning strategy and make sure that you follow it. After all, structured investment planning can help you fulfil the goals of your life.