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How to manage your money matters as per your financial goals

​Taking control of financesGetty Images
​Taking control of finances
Have you been laid back about your finances, especially about exercising control over them? If your money matters are all over the place, you need to immediately rectify this situation. If someone else is managing your finances, jointly with you or otherwise, such as your spouse, parent, older sibling etc., you need to have just as much information of and say in the matters. However, this may seem daunting at first and all of a sudden.

The sooner you make this a habit, the better because what if there is an emergency tomorrow? What if the person you're dependent on passes away suddenly? We don't think about these mishaps but they can happen anytime, anywhere, to anyone. So before you start looking for financial advisers and planners to help you manage your money, follow these simple steps to get your financial affairs in order and take control of the situation.
​To begin with...Getty Images
​To begin with...
Ensure that you are aware of all your assets, their ownership pattern and nominations. Then try to get in place your strategy for asset management. Personalize it as per your financial health and standing. You then need to get a sense of four crucial elements, given below.
​The income componentGetty Images
​The income component
Start by assessing your income streams and how you plan to increase or generate more revenue for future needs. Figure out how much longer you should keep working basis the need for income in the next respective number of years. If you can get hold of a secondary source of income, that is great. If, on the other hand, you have reason to believe that your revenue stream may dry up a little or a lot, you need to make sure that this loss or shortfall in is at least made up for by income from investments and assets.
​Make a budget of expensesGetty Images
​Make a budget of expenses
This list should include key expenses required to run your household, utilities, bills and other needs which are subjective. For example, if you have a business, you must also be incurring expenditure to run your practice or company. Check that your expenditure and income are well matched and that you are left with a surplus to take care of investments and any other uncertainties, contingencies.
​List down liabilitesGetty Images
​List down liabilites
Just as important as your assets are your liabilities. Records such as your outstanding loans, EMI payments, insurance premia, interest payments and other such charges or debits need to be kept track of.
​Assets vs liabilitiesGetty Images
​Assets vs liabilities
Next, understand how your assets and income together will take care of the liabilities and expenses. Once you get strategic big picture, dealing with advisers will be easier too and you will be able to take a call on what will work for you and how. It is advised to begin with a strategic long-term view rather than looking at financial products in isolation. This will help you avoid unnecessary insurance plans, unduly risky products and financial decisions which are not in alignment with your financial goals.


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