7 STEPS TO FI­NAN­CIAL PLAN­NING

India Today - - SMART MONEY | FINANCIAL PLANNING -

PRE­PARE YOUR BUD­GET Write down your in­come and ex­penses, cut down on dis­cre­tionary ex­penses

GET PRO­TEC­TION Cre­ate an emer­gency fund, buy health and life in­sur­ance

SET YOUR GOALS IN MON­E­TARY TERMS Cal­cu­late the fu­ture value of your goals af­ter ac­count­ing for in­fla­tion

DE­CIDE THE AS­SET MIX Choose how much to in­vest in debt and eq­uity, based on your risk ap­petite and goals

ES­TI­MATE EX­PECTED RATE OF RE­TURN

Based on your al­lo­ca­tion to dif­fer­ent as­set classes, cal­cu­late the re­turn you can ex­pect from your in­vest­ments

DE­CIDE YOUR IN­VEST­MENTS Based on the goals, ten­ure and ex­pected rate of re­turn, cal­cu­late how much you need to in­vest monthly

UP­DATE YOUR FI­NAN­CIAL PLAN Do so ev­ery year in ac­cor­dance with changes in your in­come and li­a­bil­i­ties

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