Congratulations! You have heeded a very important financial advice, and created for yourself an emergency fund. Having a buffer of three to six months of expenses in liquid assets is a significant measure. It is in fact an integral part of financial planning.

But what comes next?

You need to have a plan for the amount that you were putting away for the fund till now. Appraisal or bonus money should be allocated wisely. Without proper planning, it is easy to turn into a lifestyle creep. Now that you have created a nest egg, here is what to plan for next –

Create Wealth

The best way to create wealth, especially for salaried individuals is to start investing. Instead of depositing all your savings in banks, work towards investing some of that amount. To start investing, you can opt for a Systematic Investment Plan (SIP). You can always get a financial assessment done to decide the best plans for yourself. Take the help of a financial advisor, and don’t be afraid to ask questions!

Plan for retirement 

If you haven’t made retirement planning a priority yet, do it now. It is never too early to start saving for retirement. You can opt from products such as National Pension Scheme (NPS), Employee Provident Fund (EPS) among others.

Improve credit score

A good credit score makes it easier to avail loans from financial institutions. Make sure to pay off any consumer debt, such as credit card loans if you receive a windfall. It is important to never miss out on an EMI (Equated Monthly Installment)

Read More

The best military strategies win because they were pre-planned. No General can maintain a winning record by impulsively taking decisions that could have a long-term impact. The same analogy applies to any sport you practice, and any human achievement that you admire. Planning is necessary for long-term success. And you can define the success of your life with Financial Planning.

But before you plan, you must have a good idea of the current scenario as well as your long-term objectives. Therefore, the first step to attaining your life’s goals is Financial Assessment, which is, How much of your income needs to go into fixed expenditures as well as variable ones, resulting in how much money you can actually save. Once you have these figures, you move on to Financial Planning.

Briefly, there are a lot of financial products that you can invest in. But you must choose only those that deliver your long-term financial goals, such as a vehicle, a home, old-age security and so on. Approach a financial services company, who have experienced professionals to assist you in selecting the right plan for your life.

Once you have figured out the plan --- how much of your savings go into insurance, mutual funds, pension plans and so on --  you can be worry-free for the rest of your life. Not only is your present covered, your future is secure too. Whatever happens next won’t bother you, because it’s all covered under your plan. Get ready to savour your successes, one after another!

Read More