Category Archives: Blog

Importance of Investing with a personal finance expert

Personal finance, as the name suggests, is the process of managing the finances of you and your family. This process includes all the elements related to cash management, such as earning enough income, regulating your expenses, saving enough cash every month, investing in the proper channels, and protecting your funds. Also termed as a budget or financial plan that helps you secure a worry-free and safe future.

How investing with a personal finance expert would help?

10 Powerful reasons why financial planning with a personal finance expert – will get you where you want to be.

  • Income: It’s possible to manage income effectively. You need to calculate how much you make on an annual basis, which is inclusive of salaries, bonuses, pensions, and dividends. Once you have an exact figure, you can divide this amount into expenses, savings, and investments. A personal finance expert can help you derive the income and further plan the spend.
  • Spend management: The next element on the personal finance roadmap is calculating your expenses, which can include purchasing all the consumable products on a monthly basis. You can make payments either through cash or credit. Some of the vital areas where we spend money include rent, loan EMIs, mortgage payments, taxes, food, entertainment and travel, and credit card EMIs. Note, if the difference between your income and expenses is negative, you have a deficit. As a result, you should be able to properly manage your expenses so that you can follow good personal finance management.
  • Savings: Savings includes the cash left after deducting expenses from income. You save cash for future investments or spends. One of the most critical areas of personal finance, savings includes real cash, savings or checking bank accounts, and money market securities. An increase in cash flow allow you to consider investments to improve your overall financial well-being.
  • Family Security: One of the foremost and most accepted reason behind personal finance is ensuring the financial security of your loved ones. The various options like insurance coverage, pension plans and policies in place ensure financial wellbeing for your family.
  • Investment: Investments mean buying assets that you expect to generate a better rate of return in the near future. Some investments are risky; so you should analyze the market trends properly before making a decision. People usually invest in stocks, bonds, mutual funds, real estate, private companies, commodities, and art. Investing is a complex process and we would recommend you to seek the advice of professionals when you need to analyze the difference between risk and rewards.
    Investing with a personal finance expert will help you with your personal circumstances, objectives and risk tolerance. She ensures you do the right types of investments to fit your needs, lifestyle, and goals.
  • Lifestyle Management: The savings created in good times always prove beneficial in difficult times. For example, you can make sure there is enough liquidity and insurance coverage in case of a circumstance when you become unable to work or take a sabbatical or even if you need a break in general.
  • Financial Understanding: Investing with a personal finance expert will help you set measurable financial goals, you will understand the reason and impact of the same and at the same times you can assess and indulge into reviewing results. This gives you a whole new approach to financial understanding and makes you even more ready for a life of abundance.
  • Assets: A personal finance expert ensures that you have assets beyond the requisites. And she will help you evaluate and choose assets that never become a liability. The experts help in determining the real value of assets as well as they make you aware of hidden costs and expenses attached to settling/ cancelling or transfer of assets. She ensures that your assets never become a burden in future.
  • Protection: Personal protection includes all those products that protect you and your family when there is an unforeseen, adverse event. These plans comprise of life insurance, health insurance, and estate planning. Even this element of personal finance requires you to seek professional expertise and right futuristic decisions.
  • Timely & Ongoing Advice: Having a personal finance expert keeps you grounded and helps in achieving all financial goals for each life stage. Your financial expert can always provide truthful advices, transparent assessment and calculated risks to keep the losses a bay.

For an all-inclusive personal finance plan, you can take tips from personal bankers and investment advisors. They will understand your requirements and long-term goals and make a customized plan to secure your present as well as the future. The planning process is divided into assessment, goals, plan development, execution, monitoring, and reassessment.

Things to consider while hiring an advisor for personal finance in India

When you wish to employ the services of an expert who would guide you through the whole process of personal financial management, you can take the advice of a personal banker, wealth manager, investment advisor, insurance advisor, tax advisor, estate planner, financial planner, or insurance broker. Once you are clear about the categories of advisors and the jobs they specialize in, check online and from previous clients if they are reputable enough. You should hire only the ones who have authentic credentials. You should also be clear about their charges and compensation structure. Area-wise online searches are another great way to arrive at the best professionals in your vicinity.

If you understand all the aspects of personal finance, it is just a matter of time before you can start with your journey. You should remember that personal finance management is one of the key elements of ensuring a secure and happy future.

If you seek a personal finance assessment, feel free to connect our expert onboard here. You can also write to us on contact@sbsfin.com

This Festive Season, dig in to Gold ETFs

Gold has always had a special significance amongst Indians for varied reasons such as for its auspicious sentiments, high emotional quotient, for its high perceived value. It’s even considered as a gifting option – reinforcing closeness of relationships. In India, people buy gold all season but during special occasions like weddings, festivals or special events, it becomes a mandate.

Barring the auspicious significance, for long Gold has been one of our go-to investment products. Gold continues
to command long term value, considered as a safe haven, a hedge against inflation; asset allocation,etc. Investment in gold could be in the physical form such as jewellery, gold coins or bars but one of the most popular involves buying shares of gold exchange-traded funds (gold ETFs) i.e. owning it in paper form.

Advantages of investing in gold ETF

  • ETFs, give investors a chance to own small amounts of many different investments within a single fund – letting them get diversified exposure to gold without having to invest huge sums of money.
  • Owning gold in physical-form such as jewelry, gold coins or bars comes at a huge cost, given the making charges, storing costs, jeweler margin, etc., whereas owning it in paper form like gold exchange-traded funds (gold ETFs) comes at a price closer to the actual price of gold.
  • The transparency in pricing is another advantage. The price at which it is bought is probably the closest to the actual price of gold.

How to invest in gold ETFs

Like any other company stock, Gold ETFs trade on the cash market of the National Stock Exchange. It can be bought and sold continuously at market prices. If you wish to invest in gold ETF, all you need is a trading account with a share broker and a demat account. Like any other stock investment, you can either invest in lumpsum or at regular intervals through systematic investment plans. Here’s how you can invest using these simple steps:

Step 1: Open an online trading and demat account with a stock broker
Step 2: Log in to the website of the broker’s online trading portal using your login ID and password.
Step 3: Choose the Gold ETF you want to invest in
Step 4: Place the buy order for the purchase of a specified number of Gold ETF units
Step 5: Web system debits your bank account (Fund transfer through linked savings account)
Step 6: Units are credited to your demat account on trade day + 2nd day

Things to know before one invests in gold ETFs

Know the fund type – There are broadly two main types of gold ETFs. The first kind focuses on the commodity aspects of gold, seeking to track the price changes of the gold itself. The other focuses on investing in the companies that specialize in gold i.e. mining stocks, which directly extract the yellow metal from their mining assets; and gold streaming stocks, which provide financing to gold miners in exchange for the right to purchase a set amount of a mines gold production at a discounted price.
Know the charges – Primarily two kinds of costs are associated with investments – expense ratio for managing the fund, and broker costs considered during buying and selling units.
Know the right Gold ETF for you – There are about twelve Gold ETFs in the market. It is best to opt for funds with lower tracking error and higher trading volumes. Unlike other investments, there is no lock-in of funds, so buying and selling can happen during trading hours. It is advisable to avoid partial withdrawals or early exits, and for best results, link your investments to a long term goal.
Know the Taxation – Short-term capital gains on units held for less than 36 months will be added to investors income and taxed as per the applicable slab rate. Long term capital gains on units held for more than 36 months will be taxed at 20% after providing for indexation.

There’s no one perfect ETF for every gold investor, but different ETFs will appeal to each investor differently, depending on their preferences and long term goals. You can start by holding not more than 10 percent of gold in your portfolio. Once prices dip, you can consider allocating more to the asset else sell when allocation towards gold in your portfolio goes up.

Investment Portfolio Review – How, Why & When?

As an investor, you might have often put in a lot of effort to build an investment portfolio. But have you considered reviewing it at periodic intervals? This step is vital when designing and implementing a strict portfolio strategy. You must adhere to a regular review schedule.

In order to save money and invest it profitably, you must analyse your plan periodically. Only then, you can know about the hidden opportunities for improvement, in order to reap greater financial rewards.

What is an investment portfolio review?

Investment portfolio review comprises breaking down and analyzing your investment portfolio with an aim to better investor’s needs, preferences. It helps one to increase the probability of him meeting his set goals. It also enables one to meet the objectives of a given investment mandate, by shedding light on historical asset class performance, inflation and other related factors.

Why is an investment portfolio review necessary?

Let us help answer this question by citing an example. For example, you need to approach an investment advisor or asset management company and request them to give you a detailed portfolio analysis. The professional will first check the holdings included in the portfolio. He shall also analyze if such holdings include assets that have a high possibility of maintaining low volatility, price fluctuations, and enough liquidity to covert the assets cash when required. He will calculate the amount of investment income in the form of dividends or interest. This expert will then tell you about measures to take so that your capital does not undergo any losses.

How to perform an investment portfolio analysis?

You need to examine your investment portfolio on an aggregate basis while comparing its status to other benchmark portfolios. Some of the elements that you must consider are the total number of portfolio components, the price-to-earnings ratio, the dividend yield, and the estimated growth rate. This is then tallied against a stock market index.

The next step is to weigh the elements in relation to each other. You should understand how these different components affect each asset individually. It should cover all related ventures such as investments in a small business or real estate spends. Lastly, analyze all the portfolio components as stand-alone investments. Understand why you own a certain element, what are your after-tax cash flows, and should you continue holding your stake.

Once you have conducted all these steps, your investment portfolio review is complete. It is an important risk management tool, wherein you know which asset to buy, which asset to keep, and how to increase your financial wealth.

When should you do an investment portfolio review?

An investment portfolio review should be done when you wish to add value to your financial plan. Usually conducted on an annual basis, this activity can be carried out at the end of the financial year before you file for your taxes. It helps you to analyze the transaction costs involved, along with taxes and setting the allocation tolerance bands.

While going for asset allocation strategies, you can go for either long-term or tactical methods — which are implemented at regular intervals. At the start of a financial year, you get better visibility of your revised cash flows, tax-rule, and regulatory, changes. Hence, this is the perfect time to review your investment portfolio.

Conclusion

During your review, here are some results to look out for. Suppose you observe a trend of poor performance over the last couple of years, you should know that it is time to take a different approach. Again, analyze stocks or bonds that have been reasons for such bad performance.
Lastly, whatever step you take, do not allow emotions to affect your decisions. Create an investment policy statement with guidelines that you are sure you shall follow in the long run. Only then, your entire exercise will be worthwhile.

Wondering about your investment portfolio review?? Want to know more about reviewing your portfolio. Feel free to write us on contact@sbsfin.com

This Monsoon, don’t fall for Dengue

Rain has set in and it’s time to relax after a hot summer. Rain brings joy to everyone – we give a miss going to school or offices to enjoy chai-pakoda time, we ditch the umbrellas just to get drenched. But as much rain brings relief from the scorching heat, it also brings in troubles in the form of dengue, malaria, and chikungunya. Rainy season provides the perfect breeding ground for mosquitoes, and dangerous disease like Dengue is spread by infected mosquitoes.

The virus is transmitted by female mosquitoes, mainly of the species Aedes aegypti. This mosquito also transmits chikungunya, yellow fever, and Zika infection. The incidence of dengue has grown dramatically around the world in recent decades. And India stands at the top recording a high number of dengue-related cases.

Now that’s just the disease part! The cost of treatment has its own roadblock. An average cost of hospitalization for dengue treatment ranges between Rs. 50, 000 to Rs. 70, 000 (estimated figure), and in some hazardous cases the expenses may reach up to Lakhs! Even though the government has regulated the prices of blood tests required for detecting dengue, the procedure of platelet transplant has not yet been regulated. Which means it’s quite impossible to estimate how much the treatment can cost you and your family. It’s shocking but that doesn’t mean we can’t be prepared. After all, we strongly live by the motto “Prevention is better than cure”. The first step towards fighting it is taking extra precautionary measures.

Here are important Dengue Prevention Tips:

To protect yourself from dengue-infected mosquitoes:

Avoid wearing dark clothes as they attract mosquitoes. Prefer wearing light-colored clothes when stepping out. When outdoors, wear long-sleeved shirts and long pants tucked into socks

Stay away from heavily populated residential areas, as the dengue causing mosquitoes easily find the breeding ground in densely populated atmosphere.

Use repellants and patches and cream to yourself and your family members before leaving the house for work, college or school. Use mosquito nets at night for better prevention

Be Careful In Mornings and Evenings as Dengue infected mosquitoes are most active around mornings and early evenings.

Avoid collection of water in places where mosquitoes can breed. These include old tires, cans, or flower pots that collect rain. Regularly change the water in cooler, outdoor bird baths and pets’ water dishes

Watch out for Symptoms which include irregular fever, headache, body ache, joint pain, loss of appetite, nausea, vomiting, and skin rashes which appear two to five days after the onset of fever, mild bleeding (such a nose bleed, bleeding gums, or easy bruising)

Speak to your doctor immediately if you or your family members have symptoms of dengue. Mosquitoes that bite the infected family member could spread the infection to others in your home. So take the infected one to the hospital immediately

To protect yourself from dengue: (Cure Tips)

Identify Symptoms In Time. Dengue fever symptoms start anytime between 4 days and 2 weeks after being bitten and typically last for up to a week if taken care of in time. A delay in detection and treatment can cause a critical fall in platelet count, which can be fatal and expensive to treat.

Get Tested Immediately after you detect the symptoms. The longer you stall, the longer you delay the treatment!

Intake Lots Of Fluids especially coconut water for helping build back the depleted platelet count.

Get Insurance Cover. Make sure your insurance covers you for OPD costs and hospitalization in case of dengue fever. Since there is no regulation on the cost of platelet transplant, the impossible costs of hospitalization are quite possible! So be prepared.

Do remember, there is no vaccine to prevent dengue fever in the market. The best way to prevent the disease is to prevent bites from infected mosquitoes. Spread the word and stay healthy!

Financial Planning Tips For Freelancers

Not too long ago freelancing was considered job of the uneducated/unskilled people. It meant people with no degree or less formal education sold their skills to people who might need it. But with advent of internet, technology, valuing of skills above degrees and increase in penetration of internet connectivity all this is changing. As per a report by The Hindu, India could have up to 20 million ‘freelancers’ — individuals who use computers/internet to offer services in both domestic and export markets. Some experts believe the number of freelancers in India could double every five years until 2035.

With changing life dynamics, stress levels, pressures of balancing work home life, majority of us now want to be our own Boss instead of working in Corporate World from 9am-6pm. Freelancing offers flexibility and freedom.
But this comes with its own set of challenges. With no fixed salary and security of pay check job of a freelancer can be a tough one. As a freelancer one is the business owner and every facet of business needs to be sustainable and cared for. Financial life of a freelancer need not be unpredictable just because pay checks are not regular. Here are some ways you can plan your financials wisely and save even when your incomes fluctuate:

  • Plan for lean time and Pay yourself regularly

Freelancing can be a roller coaster ride. One is likely to earn different amounts from month to month depending on the number of jobs and timely payment. Even as earnings grow overall, uncertainty of monthly earnings will probably never change. So, it’s important to recognise this and accept the slower months as a risk of freelancing and plan for the lean periods by getting a realistic sense of your average income.
What did you earn last year? Divide that by 12 and you have your average monthly earnings. Do you have five years of freelance experience under your belt? Average those years out too and look at the numbers. Hopefully your earning are growing from year to year, but if they aren’t you need to take that into consideration and average out your income for the past few years to get a better sense of what you truly make. Once you have a solid number as
your average monthly income, use that number as a baseline for your budget.Based on the budget gift yourself a consistent pay check as if you are a regular employee of the business you are running. This will reduce stress and make monthly budgeting easier.

  • Track Everything

First step towards this is opening separate bank accounts for personal and business spending. Track every business and personal expense. Free apps are available on both Google Play store and Apple iTunes. It will give you a visual representation of spending habits and can highlight areas of waste in both in business and personal spending, as well as help decide how much one can spend each month.

  • Create an Emergency Fund-Non-Negotiable

Ideally, we should have this in place before we say good bye to safe and secure regular job. If not than this should be on top of the priority list. The fund can vary from person to person,but planners majorly recommend saving for at least 6-9 months expenses for both personal and business expenses. This will come to use during lean times or when you don’t want to take up work you don’t like. The stress of of irregular income is lessened when there is emergency Fund. In a perfect world client pay regularly as you work but in real world it seldom happens. Payment fluctuates and arrive late than the promised time line.

  • Save for Retirement

Being the business owner freelancers need to plan and fund their own retirement without the luxury of matching contribution from employer etc. Small contributions in Mutual Funds every month through systematic investment route can be initiated. One can also boost savings by making use of windfalls, such as Tax refunds or big client payments.

  • Risk Management

Some of the Insurance one can, consider buying:

  1. Term Plan – To cover the risk for your loved ones.
  2. Health Insurance – Most required and significant to ensure timely health facilities for yourself and your family.
  3. Disability Insurance – To be ready for any unforeseen and unprecedented happening and to cover the risk of dependency due to an accident, illness etc.
  4.  Professional Insurance – Professional liability insurance protects individuals from professional risks and related legal expenses. It provides indemnity in case a third-party sustains injury, harm, death or damage to property due to the professional service or advice provided by the insured.

Top 10 Financial Goals everyone must have and why Travel should be a part of it

Gustav Flaubert describes the goal of our life in one sentence when he says, “Travel makes one modest. You see what a tiny place you occupy in the world”. Travel as a mode of experience is rising as a habit among the people. Travel is invariably a costly affair if you fail to plan your financials properly and may prove to be disastrous. Here are the top ten financial goals everyone must have and also travel as far as this world can go without falling peril for the financial crunches.

1. Plan your finances and set a saving goal for the year:

Assess your income sources carefully and examine whether you are getting the worth of your hard work. If you answer is yes, and you are satisfied, and your hands are tied and weighed down by the limitations of life and your profession, then plan out your finances and set a saving goal for the year. Explore other income opportunities you can take up without putting yourself under the boulder. Stick to the saving goal, assess your savings and expenditure periodically, and review the saving goal and push to save more. Before planning to spend money, ask twice is it worth to spend and how important and urgent it is to spend money on what you planned for. It is also advised not to push yourself too much and allocate a separate fund for refreshing and recreating yourself occasionally to keep you going.

2. Prepare to meet the emergencies with a fund dedicated to it:

Society and life always present surprises. Not all the surprises are sweet, and sometimes emergencies might push over the cliff. The emergencies might be of health emergencies, family emergencies, and emergencies presented by the friends and obligations. Expect the worst and be prepared to mitigate the situation and not to get yourself to be trapped in debt. Allocate a separate fund for meeting the emergency exigencies and save yourself the stress and turmoil. On the brighter side, if there are no emergencies, the fund can be used for your traveling and other investment plans.Nevertheless, it is also advised to allot a sum for an emergency fund.

3. Plan early retirement and plan it right:

It is desirable to work hard when you are young, and it is also important to plan your retirement early. What is the point of working hard if you are unable to enjoy the fruits of your hard work and follow your passion and soul? Plan your finances to create an income source for your retirement and plan them in the areas where they are safe. Estimate the amount that needed to spend your retirement peacefully and hustle free.

4. Make budget-friendly trips:

Traveling not only rejuvenates your soul but also gives different meaning and perception to your life. It is important to undertake trips occasionally, but it is seriously advised to make them budget-friendly, if you intend to travel often and far. Budget-friendly trips don’t mean to put yourself in the discomfort; however, at the same time, it also does not necessarily should make you enjoy the luxuries you do not need them.

5. Keep track of your expenses:

No matter how small the expense, keep track of it. You should know where the money goes. This will allow you to revisit and question yourself where did you fall short in your saving goal and where is your money leaking through your fingers. This will also help you to avoid unnecessary expenses and become financially smart.

6. Know your strengths and passion and try to make money out of it:

The whole human beings can be categorized as those who follow the herd and those who follow their passion. It is important to follow ones passion and do things which one love to do, as it gives the immense, immeasurable happiness, which keeps the stress away. It is also advisable to work ones passion at the same time make money.
This should be defined as a dream job. The passion makes you excel and make you achieve new heights in your profession.

7. Explore the options to invest and plan your stable retirement income:

Along with the savings for the retirement, it is also advisable to invest the fund in order to get some stable income at the retirement. This will also allow you to travel extensively in your retirement. Mutual funds and share market with fewer risks is also an option one should explore. Alternatively, coming up with innovative and creative start-ups which will ensure minimum income sources at retirement.

8. Include your partner in planning the finances:

As it is more fun to travel with your life partner, it is also advisable to take your partner along your financial journey too. One it provides you some assurance and second opinion on the decisions you are making in your financial plans. Second, it also gives you another option of the source of income if you partner also happens to have a similar plan and orientation to include you in the financial matters.

9. Know your place and do not put the eggs in crusher:

It is an adage to say ‘do not put all your eggs in one basket.’ However, it is also important that one should not unknowingly put the eggs in the crusher. As one plan their finances, it is also important to not to be too ambitious and venture into the areas which one is not familiar and loose the hard earned money leading to make the life and the financial situation hell.

10. Insure yourself to insure your future:

It is also advisable to opt for various insurance plans such as pension plans and health insurances in order to save yourself from the financial crutches and lead a smooth and peaceful planned life. It is vital that the planning to should start early and gradually progress to be a long term venture to reap the benefits when you want to hang the boots and relax. It will also make sure that you are following the passion of traveling.

By following the above ten financial goals, one can ensure that they are traveling plans are on and exploring the world better. Some even choose to make their traveling plans as a source of income too, which is also advisable as emerging creative plans to earn money. Travel the world while traveling in the well planned, insured, income assured financial journey.

Tips for financial independence for Millennial Workforce

Wondering on how to best plan your financial life at the beginning of the career itself? Well, while it may be the right thought coming to you, it is not quite easy a task. In case you are just recent fresh graduate or fresh into the job market, several life transitions are on your way, and it is all in your hands to handle several financial situations from now on. It is essential to plan and guide the present and future successfully.

Be it just fresher in a career or starting a new life in a new city or taking major life decision, financial decisions always play a vital role in your life. You may have trouble to think about planning finances and cash flows, we understand that. Being just the beginner, you would need the help of some tips and tricks which can possibly guide you on the path of financial freedom. Let us see a few of the life changing tricks in this article.

Financial plan

There is nothing like having a tentative plan for future and present finances. They are like backbone which helps you to know the smart goals. Create a list of important financial goals and life goals and make a log. Make sure you create a dream board which can tell what all you want in life and finances you would require for that. Along with that, create life goals, possible life events and finances, regular expenditures, long term savings, and retirement goal. These will help you be prepared and know what is in store for you and what your responsibilities are. This may be a first home, marriage, parent’s health plan, travel and so on. Taking a good time to create this list is important as this will help you prioritize on finance plans as well.

Begin to create a budget every month

One cannot emphasize the importance of creating a budget every month. This is a realistic and flexible idea of knowing what is in store for you. This will also give you the financial freedom to know what you can spend on, what can you splurge on and how much to save. On average, Indians generally do not have the habit of creating budgets and spending plan in general. However, this may not be as difficult as you may think so. Creating a few guidelines at the beginning of the month does no harm but instead is good. you can also follow through online and digital tracking tools to create a comfortable budget and spending plan. Make sure you divide into savings as well, with short term saving, emergency fund, future savings, savings for a particular goal in the near future and so on. This will help you evaluate the expenses and know what is essential for you.

Create automatic savings

Once you make your spending plan, you can also go ahead and put a savings plan. While savings is done by many, the right savings plan should be taken into consideration as per income source, consistency, life goals and so on. One important thing is to make an emergency fund which is maintaining six months of minimum living expenses in case of unforeseen incidents. This will help you get sorted at the first level and then think of long term savings. One can create automatic savings as well where at the beginning of the month, the savings are automatically debited from your account and are deposited in respected realms. Make sure you have automatic savings through the deduction for at least ten percent of your income consistently.

Clear your Debts

While we know a few exceptional situations may throw us to take debts, it is crucial to make sure there are no underlying debts at first. Personal loans, debts should be first cleared before you begin saving a goal. Further, do not load up your credit card balance; make sure to pay it up on time always. That is why the emphasis on the emergency fund is also made so that debts situation may not likely arise in the future of unforeseen circumstances.

Limit on your temptations and spending

There are various aspects and things in life which we may want. But prioritizing them is firstly required. It is not simply ending of life in case you do not acquire the thing you need. However, one does not need to forgo necessary and required dreams as well in life. Hence once you chalk out your plans for savings, do not get tempted for spending on things which you may regret later in life. Withdrawals from savings should be limited to least extent in the case of most required purpose in life or for what you sincerely wish to have in life. Or else, in other cases, it is not recommended to withdraw and use up your savings for short term temptations.

Financial priorities and financial independence

Once you make sure you do not have any debts or outstanding balances to pay, then you have to make sure of prioritizing every financial aspect. For instance, you took an education loan for your studies, and you got a job. The first thing is to pay off all the educational loans you have in hand. These should be viewed as a priority. Further, just like this case, you have to chalk out your preferences every month in even small spending behavior and actions. You want to buy two things in the month; you should see
what is required for you and what is splurging. You can take a wise decision in this way.

Always remember, financial freedom is just not about earning much and saving much but knowing what it means for you and how freely you can have an idea of finances planned, goals planned and emergency sorted. It does not really matter on how much you earn, what matters instead is knowing what to spend on and what not to. it is knowing what goals you have and want to achieve and what you look forward in doing. Now one should note that this definition keeps changing for everyone. Hence make a plan and prioritize on every financial aspect in your life, from short term to present to future. This will enhance your clarity.

Know the smart saving behavior

Further, it is not just about savings but doing the right savings. Know more about savings behavior in your country. In India, people save mostly in the form of real estate, gold, deposits, bonds, shares, and mutual funds. Now one should know to what percentage of savings one should keep in these. Not everyone can depend on one formula due to differences in salary, lifestyle, savings goal and life goals, along with necessities. Hence know what you want to invest on at first, and how you want to diversify your savings.

Further, do not under estimate the tax saving method too. Know what suits your best, talk your HR in the office and know how you can take advantage of saving tax through your savings every month. for instance, you are planning to buy a home then you know how much you want to do EMI and how much down payment through which you can save particular portion of the tax. Further, know tax savings bonds, and tax savings schemes in the country like National Savings Certificate and so on. The employer can help you get an idea on taking full advantage of tax savings which can help you a better plan.

Being at the beginning of the career, you are at the right point of time in knowing how to begin and get to know the foundation of achieving real financial freedom. This is the time you can clearly start with planning financial choices smartly. While many of us do not really understand and learn these financial lessons, it is essential for a graduate to know how to plan smart, celebrate the goals and set life’s stage early and in a transparent way.