We all are always very disciplined in future.
For example: I will go to gym regularly from next week or next month or so on. We tend to procrastinate some important decisions that impact our life directly or indirectly.
“Managing Finances is one such decision that we have been putting on back burner.”
Now is the time to revisit our finances, utilize them to the optimum and how we can actually make it work for us in such uncertain times.
1.Prioritize expenses :
Expenses should be prioritized between most important and least important. Cut whatever small you can from wherever you can. Few things where you will actually feel you can change the way they are:
Subscription costs- Many of us have been subscribed to various platforms like Netflix, Amazon prime, Audible, Kindle unlimited, auto subscription of additional data plans, DTH on multiple TVs, Multiple music streaming apps subscriptions and many more. If you go look deeper, there is always a scope of saving some bucks from these by either shifting them from monthly to yearly or unsubscribing to those multiple subscriptions or which were never used or least used.
Prepare a Budget and understand your fixed and variable costs:
Fixed expenses are – Food, utilities, insurance, education expenses, health expenses.
Variable expenses are – Subscription costs , Clothes, entertainment, shopping, recreation.
At the same time, fun in life is not to be compromised. Best is find a middle way.
2. Restructure your Financial life :
Make of list of all the family insurance policies, investments done till now. This activity will help in 2 ways:
- Firstly, it will help in consolidating your Financial life at one place.
- Secondly, it will help in identifying Non performing assets, idle assets. One can get rid of the clutter and actually build a healthy investment and insurance portfolio which is in sync with goals.
- Thirdly, it will give you that peace of mind you have always wanted.
Remember, “If you have a good Financial life, you have a great personal life.”
3. Revisit your liabilities:
You can check on your credit card EMIs if any and check out with respective lenders if any sort of relief policy is in force. One actually loses huge amount in interest being paid on credit card outstanding amount. We eventually at times end up paying more than the principal itself without even knowing.
Also, need to mention that idle/ non performing assets that you identify in point number 2 above can actually be disposed and help you repay your outstanding credit card loan.
4. Give time to things that matter:
Now that things have changed drastically for everyone, we have all the time in this world – its high time that we write our future goals and allocate whatever we can in current situation towards those goals.
Because it takes drop by drop to fill our jar of happiness, fulfil our future goals. Also, you can’t underestimate power of compounding. If you are in your 20s, 30s or 40s, you will actually be able to build your retirement corpus by saving as small as Rs.2000 per month.
How can I forget , Go, Write a will today- Remember No one is ever too young to do that. Now is the time to write a Will , so that assets that you have built in your lifetime are distributed as per your will/ wish.
5. Don’t Panic : The last but not the least tip is “ Don’t Panic” . Be financially thoughtful, and mindful- one can only think when the mind is at peace and not worrying.
I can understand you may have many questions / apprehensions in such times. Everything which was in theory makes more sense today with regards to Personal Finance.
Bonus: Hence, If you are ready to help yourself, I am too ready to give you 15 minutes of my time with free Financial consultancy to address your questions/ apprehensions/ concerns.
You can book your Slot HERE.
Feel free to get in touch with me at [email protected] .
About the author: Gurleen Kaur Tikku is a Financial Consultant and devotes her time to her company www.hareepatti.com. She has done her Bachelors in Finance and Investment Analysis(BFIA) from College of Business Studies(CBS, Delhi) and MBA from IMT, Ghaziabad. She can be Contacted at [email protected]