Simplifying simply means keeping things simple. we will see how our financial planning requirements can be simplified.
As per my observation most of the People when working on their financial planning are busy finding the Best Instruments / products for their Savings and Investments, they are very fascinated by High Returns, and in this process they complicate their Financial Planning and their Life.
Just observe our Life
- We get up in the morning
- Answer Nature’s call
- Take a Bath
- Have Break Fast
- Go to our respective Jobs (Office/College/School etc.)
- Have Lunch
- After Working Hours come back Home
- Spend time with Family
- Have Snacks
- Have Dinner
- Go to Sleep
- Now isn’t this a normal Simple Lifestyle we have, is there any complication, (of course some of the activities may be in different sequence for some people)
In the same way can’t our Financial Planning be Simple to remove complication from our life, How ?
- Decide how much Money we require for our respective Financial Goals
- Estimate what will be the Future value of these Goals at the Time required
- Estimate how much we need to Save / Invest per month to achieve the estimated Target
- Start Saving / Investing the respective Amount per month
- foresee what can be the problems in achieving these targets and do Risk planning for the same
- Once a year Review the situation of both the Goals and the accumulated amount
To start with just put your Money in Simple Products like Recurring Deposit with Bank or Post Office, Bank Fixed Deposits, Liquid Funds of Mutual Funds.
Simultaneously start learning more about financial planning as a holistic approach to fulfill our life goals, learn about the various other options like Debt, Equity, Gold, Real Estate, understand how they work, how you can optimize your returns using the mix of these options.
Don’t commit your Money to any Product or Instrument that you don’t properly understand, Don’t fall for anything that promises higher returns.
Keep things Short and Simple.
Please put across your thoughts on simplification of personal finance
Chandan Singh Padiyar