Personal Financial Planning - My 3 Cents Worth

New Year has arrived and we all are set to get ahead financially for rest of the year. Also, beginning of the New Year is the right time to start improving our financial situation, so below are my 3 cents worth to plan personal finances and achieve financial success:

Understanding personal financial planning and investments

It is very important to get into the habit of saving money and let money work for us. Our savings and investments should give best possible returns, be available when we require it, and be no less secure than we are willing to accept. Financial planning makes all this possible. Prudent financial planning should be attempted for maximizing returns and protecting future, keeping in mind tax liability, disposable income, and our risk appetite. The critical factors affecting any financial decision are liquidity, safety, expected rate of returns, and inflation. If you are a newcomer in investments, the best way is to spread your risks evenly in all sectors of investment.

Three cents worth on personal finance
Three cents worth on personal finance | Source
Share your two and three cent coins on personal financial planning.
Share your two and three cent coins on personal financial planning. | Source

Emptying coins in a piggy bank method

Every day, you and your partner can engage in emptying all the coins from your purses and putting them in a piggy bank.

On your kid’s birthday, open the piggy bank, count the coins, and deposit that much amount in your PPF account over and above the yearly subscription.

Try out the above piggy bank method. Maybe these coins will fund your kid’s first bike when he/she comes of age.

You don't have to hold so many credit cards as only two or at max 3 will help in improving your credit score.
You don't have to hold so many credit cards as only two or at max 3 will help in improving your credit score. | Source

Best way of using credit cards

We all may be having credit cards or may be the most. So what we can do is when we are spending on something that is not part of our monthly budget, like the anniversary celebration, a kid’s birthday, going out with friends, etc., we should pay it by credit card and then make a note in our dairy, and within the first 15 to 30 days, we should make partial payment and when the bill comes, we make the rest of the payment. In this way, we will achieve three things.

Number 1: We don’t have to take the burden of paying the whole extra expenditure in one month.

Number 2: We have a tab on the extra expenditure that we are doing apart from our regular expenses.

Number 3: We will build a good long-term credit score, which will help us in getting loans in the future.

Above were my 3 cents worth on personal financial planning to achieve financial success. I think the above points will help you in getting ahead financially for the rest of the New Year.

Personal Financial Planning Advice : How to Create a Financial Plan

Start planning your personal finances in the beginning of New Year.
Start planning your personal finances in the beginning of New Year. | Source
Learn to create a financial plan
Learn to create a financial plan | Source
Hubpages Personal Finance Writing Contest
Hubpages Personal Finance Writing Contest | Source

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