How often should my personal finance plan be updated?
It is good to review the plan
when there is a change in life, such as marriage, birth, death or divorce. Any
change in the financial position is also necessary. Most people have an annual
update that evaluates how the plan is implemented. The review also deals with
changing objectives and circumstances.
How can I plan for the future if I do not have enough resources today?
Create a budget. Find out how
much you actually spend each month. There are fixed costs, such as rent, loan
repayments, etc., which are present every month and we can not change anything
in this regard. Variable items, such as food, clothing and entertainment, are
often those we do not think of. The solution is to create a balance sheet and
control the inflows and outflows of your assets.
What about taxes?
It is important that personal
finance plans are tax-efficient. Your personal finance plan will help you
reduce the tax liability and increase returns after taxing your investments.
Some personal financial consultants help their clients optimize their tax
How much do we have to save?
It is difficult to enforce the
saving rule because it varies by age and level of revenue. Ten percent is a
good start. If you find that % is too high for you, do not let it discourage
you. Start by saving yourself a small amount each month, which you increase
with each month.