Ah “commitment”! We’re not too fond of that word, are we? And why should we be?
There is so much to explore and experience — travel, see the world and much more!
But sometimes having a plan isn’t such a bad thing. Especially if it helps you get a little bit closer to all those dreams and goals. Without a plan, your finances can be a cause of stress.
And there are already plenty of things stressing us out — dating apps, higher costs of living, acne — why add one more thing to the list, right?
First all of all let’s stop thinking about a financial plan as merely “budgeting”. There are far too many negative connotations that we associate with budgeting — such as spending anxiety, feeling restricted, feeling guilty about spending money and so on — that might actually be holding us back.
And that’s not what we want.
Instead think of your budget as a spending plan. Your spending plan is a guide to help you use your money in ways that mean the most to you. When used correctly, it can align your money with goals and values, which eventually mean higher spending money every now and then for travel, luxuries, gifts for yourself, etc.
Financial planning means figuring out what you’re going to do with your money so that you can do the most with it. It helps you understand for yourself what your short-term and long-term goals are while bearing in mind your current resources.
These goals can be anything from an emergency fund, to being able to buy those amazing jeans from Zara that you can’t stop thinking about.
Essentially, you route your salary in different directions, so that your money works just as hard to make those dreams come through as you do. Figuring out the details of how much money you have, what you need in the future, how much you can save and in how many ways is essentially what financial planning is.
Financial planning is important for everyone, but especially important when you’re younger because financial planning helps you tackle certain factors that simply saving money would not help in overcoming, such as inflation.
Since we grew up with very little access to financial literacy, even the basics of personal finance can be difficult for us to grasp like filing income tax returns or setting up savings. The economy will keep changing and certain events like the pandemic can cause a lot of uncertainty.
Events like this can cause our income flow to change without a moment’s notice, and show us that we need to be a little bit prepared when it comes to our finances.
Now that we’ve (hopefully) convinced you that financial planning is not that hard to do, we come to the crux of the matter, how can you commit to a financial plan?
Especially since financial planning can seem daunting when you’re starting, start with small steps. An easy step is to start by tracking your monthly expense, how much money you have per month and what you are spending it on currently, then moving on to how much you should be spending and saving according to your financial goals.
Once you have drawn up a savings plan for yourself, you can start investing small amounts of money, that’ll help you get closer to your goals.
Deciml helps you save small amounts every time you spend and as per your budget.
Let’s say you spend ₹145 every time you buy your morning coffee on the way to work. Deciml rounds up this amount to the next 10 which is ₹150 in this case and invests the spare change of ₹5 in a Mutual Fund on your behalf.
Ensure that you have an emergency fund to tide you over in case of unforeseen circumstances. Consider putting money into insurance if you are old enough. An insurance policy can protect you from a lot of risk in the future.
There are lots of investment options out there. The idea is to find an investment style that works for you. For example, micro-investing (what Deciml offers) is a really easy way to start investing with small amounts and then move on to larger investments as and when your goals and risk appetite grows. But always make sure that you invest after doing enough research, what works for you might not work for someone else.
We are living in a time where there is so much information out there!
Let’s make sure our money works just as hard as we do so that it can enable us to make our dreams come true, whether that’s a summer trip to Croatia or the coolest new sneakers.
Know more about how you can start investing as you spend here .
Ah “commitment”! We’re not too fond of that word, are we? And why should we be?
There is so much to explore and experience — travel, see the world and much more!
But sometimes having a plan isn’t such a bad thing. Especially if it helps you get a little bit closer to all those dreams and goals. Without a plan, your finances can be a cause of stress.
And there are already plenty of things stressing us out — dating apps, higher costs of living, acne — why add one more thing to the list, right?
First all of all let’s stop thinking about a financial plan as merely “budgeting”. There are far too many negative connotations that we associate with budgeting — such as spending anxiety, feeling restricted, feeling guilty about spending money and so on — that might actually be holding us back.
And that’s not what we want.
Instead think of your budget as a spending plan. Your spending plan is a guide to help you use your money in ways that mean the most to you. When used correctly, it can align your money with goals and values, which eventually mean higher spending money every now and then for travel, luxuries, gifts for yourself, etc.
Financial planning means figuring out what you’re going to do with your money so that you can do the most with it. It helps you understand for yourself what your short-term and long-term goals are while bearing in mind your current resources.
These goals can be anything from an emergency fund, to being able to buy those amazing jeans from Zara that you can’t stop thinking about.
Essentially, you route your salary in different directions, so that your money works just as hard to make those dreams come through as you do. Figuring out the details of how much money you have, what you need in the future, how much you can save and in how many ways is essentially what financial planning is.
Financial planning is important for everyone, but especially important when you’re younger because financial planning helps you tackle certain factors that simply saving money would not help in overcoming, such as inflation.
Since we grew up with very little access to financial literacy, even the basics of personal finance can be difficult for us to grasp like filing income tax returns or setting up savings. The economy will keep changing and certain events like the pandemic can cause a lot of uncertainty.
Events like this can cause our income flow to change without a moment’s notice, and show us that we need to be a little bit prepared when it comes to our finances.
Now that we’ve (hopefully) convinced you that financial planning is not that hard to do, we come to the crux of the matter, how can you commit to a financial plan?
Especially since financial planning can seem daunting when you’re starting, start with small steps. An easy step is to start by tracking your monthly expense, how much money you have per month and what you are spending it on currently, then moving on to how much you should be spending and saving according to your financial goals.
Once you have drawn up a savings plan for yourself, you can start investing small amounts of money, that’ll help you get closer to your goals.
Deciml helps you save small amounts every time you spend and as per your budget.
Let’s say you spend ₹145 every time you buy your morning coffee on the way to work. Deciml rounds up this amount to the next 10 which is ₹150 in this case and invests the spare change of ₹5 in a Mutual Fund on your behalf.
Ensure that you have an emergency fund to tide you over in case of unforeseen circumstances. Consider putting money into insurance if you are old enough. An insurance policy can protect you from a lot of risk in the future.
There are lots of investment options out there. The idea is to find an investment style that works for you. For example, micro-investing (what Deciml offers) is a really easy way to start investing with small amounts and then move on to larger investments as and when your goals and risk appetite grows. But always make sure that you invest after doing enough research, what works for you might not work for someone else.
We are living in a time where there is so much information out there!
Let’s make sure our money works just as hard as we do so that it can enable us to make our dreams come true, whether that’s a summer trip to Croatia or the coolest new sneakers.
Know more about how you can start investing as you spend here .
