A comprehensive financial plan is important to determine your short-term and long-term financial goals. There is no perfect plan but a few key aspects if kept in mind assist you in arriving at a plan tailor-made to suit your specific financial requirements and goals. We will discuss this in greater details below:-

Goal Setting - Check your risk tolerance and try to fix goals based on specific time horizons.

• Short-term goals may include planning for a vacation, say 1 year from now on
• A medium-term goal may be to buy property.
• Long-term goals may entail saving for your children’s higher education.

Determine your financial ambitions. It will help you pick the right investment products.

Plan for Protection first - Protect the two most valuable things you have first -

• Protect your life
• Protect your health

Once this is in place, you can then invest to accumulate wealth for the long term. Buying adequate health and life insurance is prudent and it is equally important to scale up the protection as liabilities increase over a period of time. Insurance is not an investment. It protects your health and the financial future of your family. The thumb rule is to buy a combination of policies. Most experts are of the view that the life cover should be atleast 10 times of your annual income.

Choose the right product and check your credit liability

• Start by assessing your ability to bear a loss in times of market volatility. In financial parlance, this is termed as your risk appetite.
• Next, make sure to factor in inflation. Choose products where the actual / probable returns are higher than the prevailing rate of inflation. Otherwise, inflation will eat into the purchasing power of your money.
• Credit usage has become an essential part of our lives today. However, make sure that you use credit judiciously. On-time repayment of credit is crucial. It could be paying off your existing loans or credit cards. Being careless with credit and overspending on your credit cards can lead to a potential debt trap. This could throw your financial plan completely off track.
• Emergency Fund - Do not underestimate the importance of an emergency fund. Life may throw a curveball at you at any stage. Your emergency fund should cover atleast three to six months of your monthly liabilities. Keep replenishing this fund as your income increases. You will then be ready to face any contingencies in life.
• Modify your plan in a timely manner - Even the best financial plan may need modification. Events like divorce, death, or accidents can change the course of your life. So, you may need to re-prioritize your goals. Also, check whether your investments are performing as per your plan. Ensure that they are commensurate with your current stage in life.

Whenever it comes to managing finances, most of the young adults entering their working areas are basically clueless. Some find it to be a difficult task while others do not think about financial planning until it is quite late. Managing personal finance needs a little reading and working towards it. Here are a few tips for all you beginners:-

• Self-Control while Spending –Always buy anything that is an essential need and does not put significant stress on your finances. Practice self-control on your urge to buy things that you may not really need. Be careful if you have the habit of carrying too many credit cards, as this may put you off the track. Use credit cards to make your purchases conveniently and not only for the credit facility offered by the instrument.
• Stick to your Goals –It is better to work on goals that can be short term, medium term or long term. This will help you to invest your money and time in the right financial instruments.
• Expenses Tracking –Make a budget and track your expenses once you have set your financial goals. This will help you to know how much you need to save and how much you need to spend. You can also evade unnecessary borrowings and get a clear representation of your financial affairs. One needs to understand that smart spending also amounts to saving.

If you are planning your finances, you can follow these important points too. Just remember: Spend intelligently. Ensure protection for your family in case of your demise or a setback in health. And invest to save for your future needs and a peaceful retirement

Founded in 2005 by new–age entrepreneur Abhishek Bansal, the Abans Group has evolved into a globally diversified conglomerate, providing expertise in Broking Services, Non-Banking Financial Dealings, Financial Services, Agri-Commodity Services, Warehousing, Realty & Infrastructure, Gold Dore Refinery & Manufacturing, Trading in Metal Products, Pharmaceuticals, Software Development & Wealth Management. The Group is a comprehensive financial and non-financial services and solutions provider, aiming to provide end-to-end solutions to its clients.