Financial planning for salaried employee is not just a driven process, it is actually a basic need for every individual and his/her family. It is a complete cycle starting from monthly budget to retirement planning. The process comprises Budgeting, Insurance, Goal-Based Investments, Getting out of Debt, and Retirement.
Additionally, what is best financial planning?
A financial plan is a comprehensive picture of your current finances, your financial goals and any strategies you’ve set to achieve those goals. Good financial planning should include details about your cash flow, savings, debt, investments, insurance and any other elements of your financial life.
Then, how should a salaried person invest?
Ideally, a salaried person should stay invested for a long duration to earn good returns. Since equity funds have various categories, investors with a moderate risk appetite can go for large-cap or multi-cap equity funds and investors with a high-risk appetite can invest in a mid-cap and small cap fund.
Where should I invest money to get good returns?
For those looking to get higher returns on their savings, here’s a list of the best investment options for you to make your wealth grow.
- Saving Account.
- Liquid Funds.
- Short-Term & Ultra Short-Term Funds.
- Equity Linked Saving Schemes (ELSS)
- Fixed Deposit.
- Fixed Maturity Plans.
- Treasury Bills.
- Gold.
What are the 5 components of a financial plan?
Here are five components of a strong financial plan:
- Define your financial plan goals. …
- Make rough cash flow projections. …
- Assess your risks. …
- Define an investment strategy based on the factors above. …
- Review and refine your plan regularly.
How much should I save each month?
That said, the rule of thumb is to save 15% – 20% of your income. Most of this (half to three-quarters) should be set aside for retirement accounts like an ISA or pension. And the remaining savings should go towards building an emergency fund, paying off debt and other financial goals.
Is 30k a good salary in India?
It all depend on your money management but ideally if you are living in metro like Mumbai 50 – 60k is ideal and in rural areas areas even 20 – 30k is fine but as said again it depends on your money management.
What can I do with 30k salary?
Here’s how earning Rs 30,000 monthly can still help you to buy your first home
- Recurring deposits (RD) 1/4. …
- Equity Linked Savings Scheme (ELSS) 2/4. …
- Multi-cap mutual funds. 3/4. …
- Financing options available.
How much money should I save from my salary?
It’s the 50-20-30 Rule, i.e., 50 per cent of your income should go towards living expenses, i.e., household expenses, including groceries; 20 per cent towards savings for your short, medium, long-term goals; and 30 per cent towards spending, including outing, food and travel.
How much should I invest to get 50000 per month?
So, the amount you need to invest now is around ?67 lakhs in a lump sum in top 3 debt funds for getting a monthly salary of ?50,000 over next 10 years.
Is 25K salary good?
25K is less if you’re away from your home,and have loans to pay off. Moreover whatever salary you get it will never be sufficient if you haven’t master the art of saving. If you follow the trend and run after them perhaps even a six digit salary is also never enough.
How much do I need to invest to make 1 crore in 10 years?
Also, this amount should be after taxation. Please help. Hi Annie, to become a crorepati in 10 years, you will need to invest Rs 43,000 per month and invest in equities to get a return of atleast 12% p.a. Losing capital is something that keeps us away from getting returns.