We present eight ways in which you can create a sound financial plan
for yourself and your loved ones.
Life has a way of throwing unexpected twists and turns in
your path. But instead of fretting over the future, it helps to be financially
prepared for life’s unpredictability. Consider the following ways to plan your
financial future:
1 Set goals and act
on them wisely. No dream is ever accomplished without a goal, and the same
is true of personal finance as well. If you want to have an extra Dh
10,000 every year, you must proactively save money every month and follow that
plan diligently. Create a financial roadmap for the year that includes all the
major financial milestones you wish to achieve and act on it.
2 Explore your bank’s
personal finance products. Your bank has many useful personal finance
products for your use. Your personal banker may also advise you of new products
and services from time to time. Sign up for products that help you further your
financial aims.
3 Save to invest.
Merely saving money is not enough – it must be invested in the right
instruments to create wealth for the future. Visit your bank to get more
information about the best investment avenues for your age, risk appetite, income
and lifestyle. Creating the right investments helps augment your money for the
future.
4 Spend within your
means. This is an important habit that every person must inculcate: spend
only what you have. This applies especially to credit card spending, in which
people tend to spend beyond their means. Use debit cards instead of credit
cards, and set a spending limit for yourself every month.
5 Settle all bills
within due date. Not only does settling bills on time give you brownie
points with your utility service providers, it also gives you a good credit
score. Be sure to settle all payments on time so that your finances remain in
check and you do not need to pay late payment penalties. Settling credit card
bills on time is most important.
6 Buy insurance for
the future. Taking an insurance policy that covers you and your loved ones
is an important personal finance decision. Not only does it provide life
coverage, it also ensures your family’s financial safety in case you are absent
from their lives.
7 Insist on the
family following good financial practices. Not just you, your partner and
children must also be careful about spending money. Discourage all wasteful
spending habits and teach your children how to save money. Children are quick
to emulate their parents, so it is never too soon to impart lessons in personal
finance.
8 Plan your
retirement. This is a crucial step in your financial journey. While you pay
for your family’s dreams and make sure each of your loved ones is well cared
for, you must also ensure that you have a comfortable sum of money laid away
for your retirement years. Your retirement planning must include having a home
for yourself and your partner, as well as monies from investment and pension
plans to take care of your expenses.
