It is an irrefutable fact that a brighter future requires financial security, which necessitates having the correct financial plan. The more financially secured the employee of a company is, the more productive a resource he will often prove to be. Take a look at some of the simple ways by which employees can completely transform their financial scenario, which would prove to be a boon for their family too…

It’s all about the right habits!

Curbing the impulse to spend on frivolous expenses, prioritization of expenses that are necessary and accordingly planning the monthly expenditure is vital when you have zeroed in on the financial goals that you are eager to meet. Always make investment a priority. Once the budget is created considering investments and expenditure, it should be followed in a disciplined manner. Track your budget on a regular basis and adjust your expenditure in a manner that the amount kept aside for investments are left untouched. It is important you start investing in the right places to make optimum gains. Investing in fixed deposits, mutual funds, Public Provident Fund (PPF), etc, would help in ensuring that you are making your money grow. For the uninitiated, let’s take a look at some of the investment options in brief:

Investing the capital collected from investors in company shares, stocks or bonds, leads to the formation of the mutual fund. A mutual fund shared by several investors is collectively managed for earning the maximum possible returns.

Being a long-term investment option that is backed by the GoI, Public Provident Fund offers an attractive interest rate and returns that are exempted from tax. One can invest Rs 500 to Rs 1,00,000 in a financial year and also get facilities, such as loan, an extension of account, etc.

Professional advice always helps

Taking advice from a financial advisor to become aware of the instruments that would help you maximize your returns and meet the goals should be a priority. A financial advisor helps you organize your finances and project the result of your savings and investments in a manner that makes you aware of how prepared you are for the post-retirement phase. They would guide you in making financial decisions that will help you reach your goals as efficiently as possible.

Being emergency-ready!

It is better to start long-term planning and avoid liquidating before achieving desired results, and If any emergency arises then try to manage it by utilizing the emergency fund. Having an emergency fund that has the capability to meet the monthly expenditure for at least six months in case of unforeseen events, such as sudden unemployment, etc, would help you live a stress-free life.

Avoid plastic money

One can say that the more cash-based a payment is, the more likely it is that people will be cautious about spending. When you spend money from your wallet, you can see it reducing, which makes you more conscious of your spending habits. Credit card, on the other hand, is just a piece of plastic, in which one can’t see the result of the expenditure for almost a month. We can conclude that the habit of impulsive spending is reduced if we spend cash rather than plastic money. Focussing more on the benefits of the card and ignoring the fact, that ultimately, the entire amount would have to be paid is what makes us use plastic money more.

Being financially aware of the different investment options and ways to make one’s money grow over a period of time, is something which should be a priority for one and all. This starts by gaining knowledge about finance from sources, such as bestselling books on finance, the latest industry updates published in newspapers, blogs on finance, etc. Making sure that one devotes some time daily to educate oneself about different topics would help in making smarter financial decisions.

Helping Employees Live A Better Life

Helping Employees Live A Better Life