5 financial decisions you should never put off
The following article is an initiative of NSE and is intended to create awareness among readers
April 11, 2018 / 07:08 PM IST
Delayed financial planning is a problem many people fall victim to. It is always wise to imbibe financial discipline early in life as it pays off in the long term.
There is no shortcut to create wealth and you learn this over a period of time. Making financial mistakes is inevitable but you should work your way around it and learn from pitfalls.
However, there are few decisions you can make to avoid such pitfalls. These are five financial decisions you should never put off to build a stress-free life. As the adage goes ‘well begun is half done’, here’s where you should start from.
- Saving and investing are Holy Grail: The first step that any self-made millionaire will also vouch for is saving and investing. These two are the foundation to any financial planning. You need to save to invest and build a corpus.
- Start budgeting now: How do you save? Put yourself under a budget. Over-spending is the worst thing you can do to your financial plan. Budget your planned expenditure, EMIs, etc. Living a minimalistic life can boost your savings.
- Term insurance: Be visionary. A term life insurance plan can save your family from financial burden, in case of any eventuality. You should immune your family from financial distress, think about loans and debts you leave behind. Additionally, term insurance plans has tax-saving benefit.
- Health insurance: One visit to the hospital can drain out your savings. A health insurance plan can safeguard you and your family from expenses incurred due to medical treatments and hospitalisation.
- Paying bills, EMIs on time: You may be putting your bills, EMIs on the back-burner, but, what you are not realising is that it is affecting your credit score. Plus, you are paying a fine on delayed payment. To have a healthy credit score and be able to get a loan in future, it is important that you pay bills on time.
These are few hygienic measures one should incorporate to bring in financial discipline and go to next level on the financial ladder.