A personal financial plan keeps you on track with your financial goals. With an orderly monetary roadmap, you will manage your economic roadblocks efficiently. As a salaried person, you should equip yourself with practical and achievable financial goals as you work towards financial independence and financial security. 

As you plan your finances, you should always remain vibrant on the uncertainties in life. Many salaried professionals face an end-month financial crunch that haunts them no matter how rewarding the paycheck is. From paying bills, managing general expenses, and paying off loans, most employees are left with intimidating thoughts, wondering where all the money went. 

Financial planning brings us closer to the importance of intelligent saving and investing as you manage your home’s monthly budget. 

Some productive financial tips you should know and implement as a salaried person include;

1. Monthly Budget.

Managing your monthly income by having a well-defined outline of your monthly budget is essential. Quick tip; consider having a written diary that records your monthly budget since it motivates wise spending habits. Expenses are categorized based on needs, wants, and savings. Needs are unavoidable necessities like groceries, house rent, water, and electricity bills. Wants comprise goods that won’t affect your life if you don’t spend on them, like travelling and outings. Lastly, keep savings for future emergencies and spending. Consider applying the 50-20-30 rule for your needs, savings, and wants, respectively, on your monthly budget. 

2. Goal-oriented Investments. 

Another tip that supports saving is making investments. Investing your money in lucrative investment areas will guarantee you better returns. Always create goals for your investment; goals are the actual fuel to investment success. Banking institutions offer investment advice and products to save your money and multiply your money. For example, Amica Saving & Credit offer investment accounts like treasure accounts and investa deposit accounts that provide competitive interest rates as you secure your future and your family’s financial security. 

3. Insurance.

Insurance is a form of protection taken and paid towards you and your family’s financial security. Saving your money into health insurance and a life insurance plan guarantees payment to your beneficiaries in case of emergencies or unpredictable circumstances like death. With an excellent insurance policy, your family will cope and manage their finances better when faced with an unexpected financial shock. Insurance is a token for preserving your financial well-being. Health insurance can significantly protect your financial wellness by helping settle hospital bills without using cash.

4. Paying-off debts.

Your earnings and planning could be in vain with risky debts since you might get stuck in a vicious cycle of clearing off Equated Monthly Instalments (EMI’s) depending on the pending debts you have. To manage the burdens of debts, go back to the first step and analyze your total assets. To live a debt-free life, consider the following tips; 

• Pay your loans on time.
• Use EMI calculators for more thoughtful planning. Your EMI should not be higher than your rent. 
• Don’t get attracted by offers related to EMI like Easy EMI and 0% EMI. 
• Avoid adding unnecessary debts to your financial portfolio.

5. Planning for Retirement.

Retirement is voluntary or involuntary withdrawal from active working life. This is mainly due to age or long-term ailment. A retirement plan encourages more savings and investments in the long run and instils mindful spending. Returns from long-term investments come in handy during retirement; rental income, dividends on shares, interest on Investment deposits, etcetera. So, start investing today towards the lifestyle you want once you retire.

Consider analyzing your financial position, managing debt, insuring your family, planning for retirement, and having goal-based investments on your monthly income. By doing this, you rest assured of financial wellness and security, not only for your short-term needs but also for your long-term goals. 

Need a friend to help you Plan Smarter so you can Live Better?

Talk to us.