Friday - - Beauty -

Q I am a 27-year-old sales man­ager. How much risk should I take in my fi­nan­cial fore­cast­ing? I got mar­ried re­cently and am plan­ning to start a fam­ily. What should I con­sider when mak­ing the money work? A The pri­mary ob­jec­tive you need is a smart fi­nan­cial strat­egy to count on dur­ing some of your big­gest life changes. As you are in your 20s, your fi­nan­cial ma­trix should start com­ing to­gether so as to avoid pit­falls later in your life.

To break out of your fi­nan­cial rut and set suc­cess­ful goals while still plan­ning for your fu­ture, you need to fol­low a pru­dent fi­nan­cial method­ol­ogy and start in­vest­ing wisely. De­velop sound sav­ing habits. Learn­ing to bud­get your money will help to mon­i­tor your spend­ing and in­come ra­tio wisely.

Fol­low au­to­mated in­vest­ment schemes to in­duce your funds pe­ri­od­i­cally.

Also, start sav­ing some por­tion of your in­come to­wards a re­tire­ment pool. The sooner you start, the bet­ter you will be able to en­joy re­tire­ment.

Es­tab­lish your emer­gency fund and al­lo­cate a min­i­mum six-month fund in any money mar­ket ac­count that could be called up eas­ily. This will give you peace of mind and make you feel safe dur­ing un­ex­pected life cir­cum­stances.

Also, it’s ex­tremely im­por­tant to get a life in­surance along with a crit­i­cal ill­ness rider to have funds avail­able for any health-re­lated un­cer­tainty in life. Ad­di­tion­ally, start con­tribut­ing more funds for a first-home down pay­ment. Sav­ing now will help you to be or­gan­ised when the time comes to buy­ing a home and to man­age the re­lated cost.

That said, it is very im­por­tant to find the right bal­ance be­tween your work, sav­ing ac­tiv­i­ties and lifestyle as you are still in your 20s.

It is im­por­tant to take time out to un­wind. Try to make sav­ings plans for a hol­i­day too. Also, make sure that you have your ca­reer de­vel­op­ment plan charted out clearly.

Make sav­ing as a life­long habit, so as to elim­i­nate the stress of man­ag­ing your money.

This might be a chal­leng­ing skill to de­velop, but nec­es­sary if you want to re­main con­tented through­out your fi­nan­cial life.

DHIREN GUPTA man­ag­ing di­rec­tor of 4C Mort­gage Con­sul­tancy, is a fi­nan­cial ex­pert

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