When financial planning breaks down… | When financial planning goes awry… | Article by Sanjay Maittal IG News

Aurangabad10 hours ago

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Everyone needs enough money to survive. But we should always be ready to face the problems arising due to lack of money. Because not all days in life are the same. At such a time, it is impossible to predict when the financial crisis will be faced. Sometimes we have no idea when a seemingly small crisis takes a fierce form and then it becomes difficult to deal with a big crisis. We cannot control such sudden financial crisis, but we can prepare for such crises in advance so that such crises do not affect our family.

Provision of Contingency Fund After facing financial crisis, contingency fund i.e. emergency fund can be the biggest support. Such contingency funds are most needed after a job loss or pay cut or business loss. In such a situation, you should have a contingency fund that will last you at least six to nine months. E.g. If you need Rs 30,000 to Rs 40,000 per month for EMI, groceries and other needs, you should have Rs 2,000 to Rs 3,000,000 as a contingency fund in your account for six to nine months. Of course, instead of keeping this amount at home, invest it in a safe place in the form of FD or any other savings. Don’t celebrate by paying off debt… People in India have special emphasis on celebrating festivals like weddings by paying off debt. Moreover, the use of debit and credit cards is also adversely affected by financial crises. So, let’s estimate from time to time how much debt is left on us. Prioritize paying off short-term loans as soon as possible. Because it becomes difficult to repay such short-term loans if faced with financial crises in the future. Cut off all unnecessary expenses and use this amount to pay off debt. Pay installments of long-term loans taken for home loan, four-wheeler on time. Avoid borrowing money from anyone. Because such small amounts take the form of large loans over time. Control your expenses If you don’t want to face any financial crisis in the future, control your current expenses. Avoid expenses like hoteling, shopping, buying new gadgets, tourism if possible. Also find ways to generate income from real estate so that you can save some money in addition to regular expenses.

Keep an eye on your investments. Periodically review where you have invested the amount of your income. Get out of risky financial investments like the stock market by looking at the portfolio’s risk tolerance. Of course, you should take this step in consultation with your financial advisor and your own financial investment objectives. If your financial goals are long-term and you have enough time on hand, you can continue with this investment by striking a balance. However, if the objective is short-term, then it is advisable to exit from the investment which may cause loss. But don’t forget to invest a large part of your investment portfolio in the form of FDs in the bank.

– Dr. Sanjay Mittal, Backing Expert

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