Warren buffet, the famous American Business magnate and investor bought his first share at the age of 11, regrets that he started too late. Most of our decisions in life are driven by money and often we are worried about how much we earn, spend and save. Simple financial planning will help you support your lifestyle for future, achieve your goals and increase your “Happiness Dividend”.
The returns which our small investments give us are a gradual steps towards building a safe and promising future. These small investments coupled with power of compounding can give mighty returns. Talking of mighty returns, Warren Buffet who started investing in late 1960’s has amassed more than $76 billion following a simple mantra of investing regularly and holding it for a long term. His wealth is now bigger than the GDP of some of the countries. Imagine you are cleaning your closet and you find some cash kept inside it which you had almost forgot (Although I would prefer that I don’t find any old 500/1000 rupee notes now in my closet). The rush you feel can’t be expressed but you feel confident and happy. Timely investments and healthy returns will give you the same rush.
These tips will act as a moisturiser for your fund from drying up. These tips are not any gimmick or a magical wand- just an easy to follow steps to create a healthy and dependable system.
You need a North Star
In life we cross our paths with people whom we find inspiring for some of their qualities.This inspiration encourages us to reach the pinnacle. Such a person could be a father figure or our own father whom we have seen managing our family or for that matter our mother who is prudent in managing the household expenses, it could also be our teacher or even somebody strong willed like Eklavya with a mastery in archery and exceptional prowess.
Likely you need the right advice from your financial advisor. He or she will ensure that you achieve your goals timely. But ensure you have done your homework before investing.
Better late than never
There is no right or wrong time to enter the market. Start saving with your very first paycheck, and if you are not comfortable putting huge amounts start with small and learn as you go. You can start your investments by contributing as low as Rs. 500 per month and still manage a decent return. Learn to invest and forget otherwise you will keep on worrying about your funds every now and then whenever the markets fluctuate. But it is equally important to track your finances be it through your smart phone or an app.
Patience is the companion of wisdom
Patience always pays and when we talk of investments, there are ups and downs which may not be in our control but we have to think of the bigger picture and its long term perspective.Prepare a budget and start investing from the beginning of the year i.e. April, rather than blindly investing during the fag end just to save taxes. Gather information from renowned sources and then put your money rather than following trends blindly. SIPs (Systematic investment Plans) are the best way to invest for the long term and ensure healthy returns.
Use technology as an enabler
Technology plays a very crucial role in today’s world and with penetration of smart phones and mobile services provided by almost every organization it becomes very easy and handy to manage one’s investments. Now-a-days most of the organizations be it Banks, AMC’s (Asset Management Companies) or any other financial planners provide various kind of apps which helps one to manage transactions. Automate your investments be it your credit cards bills, cell phone rentals, EMI’s or investments. Through auto debit facility one can track his or her investments and keep a record as well.
Following list of tools (though not exhaustive) can help you manage your investments:
- iExpense Diary – An app which provide you to manage your income and expenses.
- Money control – This app helps to track you investments and market movements.
- Bank’s app/ UPI – This will help you do most of your work be it fund transfer or payments.
- Splitwise – Helps to split the bill when dinning out with friends.
- My Tax India – Calculates tax considering your income, investment and other financial obligations.
- ET Wealth – Newspaper which not only provides information about best investment avenues but knowledge about financial terminology and trends as well.
These are some basic tips for beginners to enter into the world of finance and start investing. These tips willnot only maintain a sound financial health but will also help you fulfil your aspirations.
-Prof. Chintan Vadgama