Financial Planning for Professionals: If you understand these 5 rules, your bank account will be full..

If you want that there is no shortage of money in your life, then start financial planning along with your job. However, it is very important to understand how to do financial planning. Here are the 5 rules that every professional must understand. If you apply them, then your financial future will always be bright. The bank account will be full of money and life will be spent happily.

Make a budget

Make a budget for your expenses and income. At the beginning of the month, decide how much money you will spend where. First of all, give priority to your needs, then savings, and finally keep money for entertainment. Budget helps you to save from unnecessary expenses.

Prepare an emergency fund.

An emergency fund is necessary for everyone. This fund can cover the expenses of at least 6 months, and save enough money. This fund will be very useful in any unexpected situation like losing a job or a medical emergency.

Make saving a habit

Make a habit of saving at least 20-30% of your income every month. As soon as you receive your salary, put the savings in a separate savings account so that the money is not spent anywhere. Invest this savings amount.

Start investing

Make it a habit to invest your savings. Only investment can secure your future financially. Start investing as soon as possible and include a variety of options in your portfolio. You can invest in different options like FD, stock market, mutual funds, SIP, or PPF. If you want to take advantage of compounding, the sooner you start investing and for a longer time, the more benefit you will get and you will accumulate a huge fund for the future.

Use credit cards wisely

Use a credit card only when needed and pay it off in full on time. If you use a credit card wrongly, the interest charged on it can take a toll on your financial situation.

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