12 essential financial planning rules for a successful investment journey in 2024
outlook for gold and equities in 2024? Will gold continue to rally with geopolitical tensions rising? Will equities continue outperforming or take a backseat? This is where financial planning and asset allocation are important. As an investor, your focus should be on financial planning and not chasing returns. The new year brings a lot of enthusiasm and optimism.
Use this opportunity to streamline your financial freedom journey with these 12 financial planning rules. In this era of Do It Yourself (DIY) platforms, a qualified and experienced investment expert's importance must be recognised. The expert can handhold you for listing financial goals, making goal plans, making investments, and regular reviews till the goals are achieved.
Budgeting helps you free up financial resources for investing towards financial goals. For example, the 50/30/20 budgeting method allocates 20% of income towards savings and investments. Automate your investments through SIPs, and insurance premium payments through auto-debit instructions.
Keep the SIP date around 2-3 days after your salary date so that the investments are taken care of, and you can spend the remaining amount on needs and wants. Usually, the higher the risk, the higher the expected reward, and vice versa. An investment expert can help you identify suitable financial products based on risk, investment time horizon and other factors.
Inflation is a silent monster that erodes the value of your money. On the other hand, compounding, which Albert Einstein called the world’s 8th wonder, helps you grow your money. Long-term investing helps you benefit from the power of compounding and earn inflation-beating returns.
Read more on livemint.com
