Having Financial goal in life is essential. If anyone does proper planning in life will help him to grow in life fast and can achieve a financial goal. You should have a financial calculator of your personal life. More you save more you can spend. More you invest more you earn. Earning multiplier happens when you invest more, and Investment makes your income stable and ways to save more money on a small and tight budget. We need to practice the rules which we make in our financial calculator in our life for spending. Saving is teaching which happen from childhood. We should make our five years financial goal in our life. You should decide where you see in our life and make your financial calculator in respect of finance in 5 years from now onwards.
- Plan your Spending Priorities
We should always plan the spending priority. We should take the paper and make the list of priority of things we need to spend. Each priority should be listed according to the impact of not meeting them if the spending is not done. Each expenditure should have financials goal. Priority should be as per the financial goal we have which we made of your three years plan on what we will be spending, and others expect of a five-year plan.
- Medical Spending:
Many time our children, parents, and wife come in our priority. Medical spending is such which no one can avoid if the disease occurred in our life. Critical illness or illness is the fist which we need to take in the consideration. Essential medical expenditure is the expenditure which we cannot stop happening.
A measure which we need to take in this –
- i) Have Medical insurance over of all your family before any disease illness comes in our life.
- ii) Consult an excellent medical doctor before we go to consult them. Ensure that the doctors are specialist in their field.
iii) Take the opinion of minimum two doctors before we go for any surgery or any extended medical treatment.
- Loan EMIS spending:
As per the good financial consultant your spending in Loan EMI should be not more than 20% of your monthly or yearly package. The ratio of 20% is more than seeking to be reasonable and enough for another spending.
- Systematic Investment plan:
In our financial planning, we should have a systematic investment plan each proposal should be as per our future expenditures and upcoming expenditure which will be coming in our life. For example, two years from now onwards there will be expenditure for admission of our child in engineering and medical college admission. The education fees will be the priority for that time. So need to plan in future for the same expenditure. There is a lot of investment scheme for the systematic investment plan. These plans come in Mutual funds and other market financials products.
- Grocery buying tips:
Always buy grocery for the store which gives massive discounts. The stores such as D Mart. Walmart, Big Bazaar and other online stores which provide massive discount such as AMAZON, EBAY. Also, there is the whole seller which give discounts if that whole seller but the product from the farmer who is growing crops. You can also receive a heavy discount if we purchase for the same store and search the market where you get a substantial discount on the grocery store. Always try to buy for the one month at one time and store at the place where we can have access to our house and can get more comfortable when we have required them for cooking the food.
- Don’t spend the significant amount on entertainment.
Many people spend a lot in the movie at one time, and this spending will result in cash deficit at the end of the month for Salaried employee and for business all the working capital will be get eroded. So entertainment expense should be avoided, or it should be the minimum and sensible expenditure.
- Spend on good food:
Always spend on good food instead of junk food. Don’t eat junk food this will lead to illness which will further lead to spending on medical expenditure. So the best way to avoid food which does not give you proper vitamin or carbohydrates. Always try to eat raw vegetable which will make you healthy and expenditure on medical will be avoided.