Monthly Archives: April 2019

Easy Ways You Can Turn Personal Financial Planning Into Success

Personal financial planning means having financial goals and then taking systematic steps to achieve them. It is a method through which you can keep a balance between your wants and needs. While you might have a personal finance plan, its success is never guaranteed.

An extended shopping spree, an outstanding credit card bill or a sudden emergency expenditure, all these are enough to throw your finances plan out of track. However, if you plan your finances taking into account every possible gap, your financial plan can be a success too. Here are a few ways to do so.

  • Identify your goals and objectives

Defining your goals and objective is one of the most vital steps for successful financial planning. Your goals should have all the SMART elements. It should be Specific, Measurable, Achievable, Realistic and Timely. While setting your goals, objectives and targets, envision your future, asking yourself questions like what all you want to achieve, where and how you see yourself and how much amount do you need to reach there. Also, though aiming high is a good thing, ensure that your goals are realistic, which can complement your financial plan and help you achieve them turning it into a success.

  • Ascertain your present status

You can never reach on your destination successfully on time if you do not know where you are starting. Similarly to achieve a financial success it is necessary to ascertain where you stand at the current situation. It is necessary that you have a clarity of your financial information, regarding your assets and liabilities, expenses and receipts. Moreover identify your risk tolerance and capacity, along with putting down all your obligations including taxes and debts.

While looking at the financial aspects of your life distinguish between your financial strengths and weakness which will help you manage your money well.

  • Execution of the financial plan

A financial plan can never succeed if you do not put it into action. Often this is the most difficult part yet most important. Sticking to your financial plan demands a lot of determination and people often fail to do so. You might deviate from your plan due to change in circumstances, or mood that can defeat its overall purpose. One way to avoid is to divide your goals and objectives into short term and long term and tagging them into deadlines.

An important way is periodical review of your financial plan. Your goals, financial position and circumstances can change with time. Therefore it is necessary that you review and revise your financial plan accordingly.

  • Have an inclusive financial plan

There are various ways to create a financial plan which ultimately aims towards your financial stability. However to ensure that your plan is successful, it is essential that you include all the required strategies. These are risk management, tax planning investment management, retirement planning, debt management, etc. Debt management is significantly important if you are trapped in debt trap. Adopt a debt repayment plan and build your credit history.

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All You Need to Know about Your Personal Loans

What are personal loans?

Personal loans are unsecured loans that you can take from a bank or a financial institution to meet your personal needs. A personal loan is a debt that you are required to repay in installments as per the lender’s repayment tenure. Moreover, lenders charge you an interest for the amount you borrow which is often higher than other loans.

Being an unsecured loan, you are not required to submit any collateral or warranty in lieu of the personal loan amount. However, defaulting on a personal loan can adversely affect your credit score.

What can you take a personal loan for?

A personal loan has no end use and so you can use it for whatever purpose you want to. It could be used to finance the following purpose –

  • Education
  • Wedding
  • Consolidation of debt
  • Business
  • Travel
  • Home renovation
  • Medical expenses
  • Emergency Situations

Eligibility

Every lender has different eligibility criteria to lend you a personal loan. However, as an overview they consider the following factors – your age, occupation, your income, the city you reside in and your capacity to repay.

Often there are different criteria for self-employed and salaried person.

Your eligibility is also determined by your credit score and credit history. While the amount of loan you get also depends on the city you live in.

Tips to help you get the best personal loan

 A personal loan is beneficial when you want to solve your urgent financial needs. It is easy and simple to avail with easy repayment duration so that you can repay the amount as per your convenience. If you are planning to avail a personal loan, look at these tips to get the best deal.