You can well consider this as some major points where your attention required highly, when planning your personal finance for self and family. These are some most common but must have requirements with any personal financial planning and well understanding on each of this help you to not think a lot about any missed points after creating your list to move forward.
1. Make provision for your parents medical expenses
We all are aware about the requirements of protecting our self and family members from huge possible hospitalization expenses, that can expect at any time. Expenses from hospitalization considered as the most dangerous among other happening expenses by its nature of volatility to the expense amount that no one can predict. No one is free from hospitalization possibilities at any time and its related expenses. This is the major reason, all experienced and true personal finance advisers recommending their customers to go with enough medical coverage to self and family at the beginning of your personal financial planning. One can go with a good medical insurance such as family floaters, to protect themselves and family by single shot.
But, I always prefer to work a little prior applying to such policies blindly. Need based approaches are the best to identify your exact requirements and apply upon that. Through this approach, one should study about his present situations first and apply for policies that meet all his goals. For example, old aged people from your family should have more coverage than compare with young aged people. Young people will come to the queue next and finally children’s. Such study bring you to the right position of identifying exact coverage required by each personnel in your family and applying for any policies that meet all these requirements.
2. Plan well for your children’s future through child plans and it should be long term
Kids planning should happen for long term. A golden rule here is, invest for the future of your kids from the time of your birth. Instead of going for all possible kind of investments, well focused approach with most suitable investments instruments will bring more result. Read this article to know how I have planned the investments for my kids. Yes, this will help you to understand how structured idea works better than open approach, equal to all available investment products. You may find this article is specific for people from a specific geographical location, but it gives complete idea for all from anywhere in this world. ()
3. Plan for your holiday trips or pilgrimage. The source should be different from your main finance planning stream
Always remember, any future planned holidays and pilgrimages should not come to the first core of your personal financial planning. Such goals are secondary and should consider as a separate goal from the main. Through dividing as such, one could able to focus more to his most required life goals first and then for any secondary goals. If you are a money saving savvy, you can consider canceling such huge money losing secondary goals and divert these money to achieve your preliminary goals little early. A best approach is to work for attaining preliminary goals first and then start planning for secondary goals and preferences.
4. Plan for your retirements – Realization of retirement plan is important for this
There could not be anything more to say than what we already know on retirement planning. But, always remember the golden rule; start investing for your retirement from the first day of your first salary. ‘Start early and retire early’ should be your approach and goal. With an intention of retirement plan, one can prefer any kind of investments that able to give excellent returns in the long run. Always remember to keep all your investments as manageable than over diversify to number of various products. Remember the theory of ‘Small is beautiful’ here.
If you have any thoughts other than what I said is this article, you are welcome to point out the same here as comment. You can inform me the same directly to me by using the contact form in the top menu of TMM blog.