I wish to give you the three basic tips for planning your finances effectively. These tips may sound very simple for you. But the success lies in being determined enough to stick to them and make them a success. The three basic tips are:
1. Save money and Invest.
I think that sounds very easy. But it is not. Whatever be your salary or monthly income, you have to develop a sense or instinct to save a part of it. People say that to make the best financial future without affecting your present you have to make a savings of 25% to 30% of your monthly income. This money you saved can be used to invest in commodities like mutual funds, real estate etc to earn long term benefits.
2. Make a budget
Nothing is possible without a budget. To make a fixed savings every month, make a proper budget for yourself that has definite and sensible plans. Your budget should be very realistic and must not be out of your dreams. The next step is to stick to your budget and never move away from it. The budget can succeed only if you follow it effectively.
3. Learn to Use Your Credit properly
The major source of credit for most of the people is credit cards. If you do not know how to use your credit card effectively, then you are surely going to be a looser in the game of finance. Use your credit card only for urgent and unavoidable needs. Make minimum use of your credit cards.