Monday, 15 November 2010

Diwali Bonanza Plan for 2011


This Diwali has just gone and we have almost a year to the next Diwali.So instead of looking for the next 'get rich quick' scheme,lets use the time to plan and get wealthy in time to celebrate the next Diwali in style.

There is no substitute for simplicity in financial planning and given below is a 3 step plan to make your wealth creation dream a reality.

Step 1:Make a Plan
Stating the obvious with the need for a plan to execute.Remember,its your wealth and not your income that matters.Remember people with high income like Michael Jackson died with a lot of debts.So,you need to have a personalized well-written financial plan.

Ask some basic questions:
  • What are the things you want to save and invest for?
  • Decide how many years from now you need to achieve each and every goal?
  • Create your own list of financial goals.
Take help from online tools and even better get a Professional Financial Planner to ease your burden.

Step 2: Pay off debt now
Create a plan to come out your high interest debts like personal loans, credit card outstanding, car loan etc.
If you are not giving enough attention to your debt, then it can sink your financial ship. So take some time on this Diwali to list down all your borrowings and make out a plan to come out.

Step 3:Save and Invest
Saving is as simple as spending less or earning more. When you check where you are spending your money, you will be surprised to know how everyday petty expenses that you can do without add up over a year. Take into account the time-frame for investments, risk you can afford to take, inflation and your financial goals.
Make sure that you are not violating any investment principle. Don't fall for speculative gains or Ponzi schemes and get rich quick schemes.

If you follow these simple steps, by next Diwali you will be wealthier than what you are this Diwali and can celebrate next Diwali with much more confidence and peace of mind.

Source : Multiple source

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