How to manage fund to never run out of money?

Follow simple steps to Never Run Out of Money

Do you earn a handsome amount of money but Don't know where all your money goes? Are you running out of money every month? Today we the best financial advisor in Lucknow share few easy steps that will help you staying in control of your finances and never run out of money. So, Lets get started.

1. Initially try to keep track of your income and spending

Keeping track of your everyday spending is the most effective approach to avoid unnecessary financial withdrawals. Keep track on your spending will make you more aware of how you spend your money each month. To find a huge flaws in your budget look at the cash withdrawals statement at the end of each month. Once you identify the flaws, you will be able to eliminate any unnecessary costs to free up resources that may be put to better use elsewhere.

2. Make projections for future requirements

Know your sources of income and spending of each month. Future financial spending need to be planned early, for example the amount of money that you will need to maintain a particular quality of living, the amount needed for retirement, can be predicted in advance. For accurate calculation, you need to include inflation. Make a list of your major spending's and invest for each of them for a certain time period. Kstar Group- best financial consultant in Lucknow helps you plan your income for future, retirement, physical well being and more. For better future contact Kstar Group.

3. Make saving a top priority

Prioritizing helps you to focus on the most essential goal at any given time. Saving must be your first priority. Saving compels us not to get things now so that we can have the greater ones later. Once you receive your salary, you should set a definite portion of it for savings. Ideally, you should set aside 20% to 40% of your salary for savings and spend the rest of your money for other purposes. Kstar group stand as a best financial advisor in Lucknow. They will help you plan your saving investment better.

4. Investment is equally important

Saving is a good but investment is equally important. Invest your money into growth opportunities that will be more helpful to you to develop a healthy portfolio. The best and simple way to invest in stocks is through mutual funds, SIPs. You get the benefits of diversification in Mutual Fund way. Always invest a percentage of your money = 100 - (Your age in stocks). 

For example, if your age = X, 

Then you can invest your funds in equities by calculating (100-X) % 

Equity has traditionally delivered a CAGR of about 15-16% over 15-20 years, making it an appropriate investment instrument for long-term goals.  

5. Keep power of compounding to good use

Using Systematic Investment Plans make compounding work for investors advantage. This also helps them to be more disciplined in their investment. After 30 years, a monthly investment of Rs. 10,000 in a SIP with a 12% annual return results in a corpus of Rs 3.2 crores. Even if you don't have enough money, beginning a SIP early can help you gain a lot of money over time.

6. Also save for emergency

Any emergency has the potential to deplete all your resources and savings. In such situation, having an emergency fund other than your savings and investments fund can help you in meeting unanticipated financial obligations. An emergency fund keeps you afloat for at least three months, even if there are no fund inflows. You should invest or save a specific amount from your salary for an emergency fund. You can also invest in short-term debt funds or liquid funds as an alternative for emergency.

Thank-you for reading this blog. Above are the top investment steps that can help you from running out of money. Contact us to know more and make sure that you never run out of money. Hope you find this useful. For more details visit our website.

Note:- This blog is only for educational purposes and not to be treated as personal advice. 

**Mutual fund investments are subject to market risks, read all scheme-related documents carefully.