New Investors- Financial Planning
Here are the few ways of financial planning for new investors-
1 Learn Various aspects of Finance
You can take the help of financial planner for making investments but you should also understand the basic concepts of savings and investment, and how each investment option works. Consider the positive and negative aspects of each investment option. For gaining this knowledge you can refer to internet, blogs, newspaper, etc. After gaining this knowledge you will understand how market works and what your financial planner says.
2. Start a Recurring Deposit
A recurring deposit helps you to save regularly and is a safe investment option for a new investor. You can invest any amount according to your salary and depending upon the amount you can save after meeting your expenses. With regular investing you are stopping wasteful expenditure alongwith allowing your money to grow. This deposit at the beginning is suggested with an idea to develop a habit of regular investing.
3. Get the important things Done First
Certain activities like taking a life insurance cover, taking a health insurance cover, having an emergency fund, starting a PPF and NPS account and getting your basic documents in place are of prime importance. Once you establish a risk cover and install a retirement plan, you can then gradually look at new avenues like equity mutual funds, real estate, stocks and other investments over a period of 2 to 4 years.
4. Establish goals and plan your Financial Life
You can plan your investments in different areas after defining and prioritizing your goals. Remember to determine the present estimated cost for each goal and then inflate it to the approximate value as on the due date.inflation plays a critical role when you determine your goals and plan your finances. Do regular reviews and invest wisely by consulting experts.’