How to plan for financial stability and security in life

fst If you are planning for financial stability and security, your areas to focus is over controlling your expenses, eliminating your current debts, increasing your savings and hence increasing financial security to your family. A systematic financial planning is necessary before you actually work on it.

Control over your expenses: Well, this is the first move you can make if you want financial stability and security in life. This does not however mean that you should compromise on your day to day necessities. But definitely you can have a control over your impulse spending.

You should be able to reduce the frequency of your outing, eating out, etc. If it is difficult in the beginning, then start by cutting short and making your entertainment just once in a week or a fortnight.

Eliminate your debts: List out all your debts including the small amounts that you have to pay. Try to pay off the small amount first and then clear of the huge ones. When you are clear with your debts, you are half way done. If possible, keep the use of credit card to minimum.

Prioritise your spending: Make a list of those essential purchases or expenses that you simply cannot avoid. Then follow them accordingly. Do not spend for things that are out of your list. Likewise do not buy grocery that is not included in your shopping list.

Start savings early: Do not delay your savings plan. Start saving today so that you have a better and secure tomorrow.  Try to save at least 5-10% of your monthly income and deposit it in your savings bank. When you have a good figure, you can choose fixed deposit so that you don’t have a tendency to withdraw it often.

Set a minimum limit for your monthly bills: Do not allow your monthly bills like telephone, electricity, mobile, etc., exceed its minimum limit. If you can control over these, you are surely to win.


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