One of the most sought after service providers these days,especially in larger cities are professionals that can guide people through financial planning including tax planning, risk management and other individual financial matters based on the future planning goals. Whereas there is nothing wrong with this and indeed there are specific financial professionals that are available and invaluable in helping people to take care of their financial planning requirements, more people should be aware of the financial implications of various activities and must have basic knowledge about saving, taxation, income management, accounting and budget planning. Whereas a financial planner can help you organize your finances better, it is important to understand that you can maximize the potential of your income and makemore money on your own, it might take longer and be less efficient, but you sure can do it.
Let us discuss a few pointers that can be helpful in you trying to find a course for your financial planning:
- Have a budget: Creating a budget is a crucial activity to help monitor the income and the expenses and to establish whether you have been or can save enough for the future. Budgeting will also help you know whether or not the income being generated is enough or more needs to be done, and if yes then how and how soon. It is important to note all the incomes monthly from the job, rentals or other sources and then to compare it against the expenses and do a careful evaluation. Budgeting often requires to lay down the short-term expenses and to plan the other expenses around it. For example if you are planning to go on a vacation in a few months, you must cut your other expenses such as eating out or going for movies, etc. Having a budget also brings about prudence, discipline and awareness of the effects of overspending. So, a budget is a must.
- Start young: The key of compounding states that the earlier you start on your financial goals, the faster you reach them. To achieve that however, one must start as soon as possible, perhaps with your first job itself. Saving a part of your salary from the beginning will reap rich dividends in time. Creating financial awareness among children and young adults, as well as defining your own life’s financial goals is quite important to arrive at a targeted amount. All the other expenses should be done after having done that particular long-term investment.
- Understand the financial products: Although it is quite easy to hire a financial professional that will advise you on the different financial products and investment options, it is extremely important to understand that many of these professionals work on lucrative commissions that, many times have them selling a particular product or service. One must invest time and resources in understanding the various investment products and accounting principles. One must as well understand the saving products such as tax saving instruments and insurance products and do a careful analysis if the projected and expected returns in the short, medium and long term. Before you invest your life’s savings in any product, you must, in the interest of your own money do a careful research on the product as well as the financial consultant, if hired.
- Use technology: Like everything else in today’s world, many facets of financial management have been invaded with technology. On a personal level, it is important to understand the uses of online banking, online purchase and sale of financial instruments as well as pending some time in finding out if it is cheaper to use technology to financial products and services directly form online portals than commission agents. Most of the time, it can be found that quite a bit of money can be saved by buying some financial products online such as insurance products, dealing with shares and equities or even filing income tax returns and other individual financial products. Technology has made our lives easier in many aspects and financial planning should not be an exception to that. Also, apart form the products themselves, the Internet must be used to improve and increase one’s knowledge and skills in financial planning. These days there are many blogs, financial calculators as well as various other financial resources that can help you take investment decisions at the same time saving money on expenses.
- Invest in a financial advisor: Whereas it is all very good to keep yourself aware and abreast of various financial products and investments, it also makes sense, especially for the High Net worthIndividuals (HNI) to invest your money in the services of a financial planner or a financial advisor that has a proven track record of providing better returns to their clients. This is all the more important for people that cannot find time to study different financial products or might be poor in the understanding of money and accounting processes. Rather than making a mistake that can cost dear in the long run, it is advisable to hire a financial planner that can take care of the entire gamut of investment and financial requirements such as taxation, budget, accounting, saving and other financial requirements. That way you will be able to spend more time with your family and that is priceless.
How to find a competent financial advisor
One way is to look around and take advises and references from family and friends, another, better way is to use the internet to try and find acclaimed and well reviewed financial planners around you. YouDo.com is one such portal that can make it extremely easy as well as effective to find an accountant or a financial service provider near your place of residence or work. Basically YouDo is an excellent web portal that brings the service providers and service seekers together in complete safety and employing the industry standards in verification and authentication of all contractors so that the customer ends up getting genuine professionals. YouDo is an aggregator of various professionals and specialists across segments and can be used effectively to find service, contractor or professional that suits you.