In 2022, the private economy could be much tougher. So, the personal financial plan is very much important for financial strength in life.
Poverty has almost doubled in many countries due to the brutal and irresistible grip of the Covid-19 epidemic. Financial loss of the last one year and the pressure of prosperity in the New Year, the poor and middle class people have no choice but to work hard with a hard plan.
What can we include in the New Year’s personal economic plan? I have tried to write the following points from the thoughts of economists and from my personal views.
Fix personal economic mission
There is no exact goal for the unmarked boat or ship to land at. Similarly, if there is no specific goal of economic activity, then there is no end to that personal economic activity. The pace of the private economy needs to be fixed first.
Make a realistic plan of how much you will earn and how much you will spend in 2022. If you need to increase your income, decide what you need to do to increase it. Also see if there is a need to learn any new skills.
Try to save some money by controlling costs
Get rid of clutter you don’t need. Unnecessary and less necessary expenses will not let you go ahead. This year is not for luxury at all.
Save some money without spending it all. If you do not have money to save, make some extra income. It cannot be said whether Covid-19 or anything else can get you in trouble again. If there is no savings, the joy of life also decreases.
A non-savings career increases dependency and extreme dependency on the existing work or field of the work, which once leads to the realization of slavery.
Find out how much profit or loss is in savings and investments
People say savings is a pretty good habit. But not everyone says where the savings will be. If the savings left unmanaged, they can be left astray and lose the right values.
This is a hidden fact of the economy, which is later unveiled. Take a look at this aspect. Inflation is on the rise in this world today. So, economic analysts recommend investing in safe business.
Try to understand yourself exactly where to invest, and that investment will pay off a lot more than savings. It can be saved in the bank. This is an easy way to save. But the stock market is one of the best platforms to invest money. But there is a big risk for fools.
Think about the investment risk
Not being able to take risks also means failing – that’s what Facebook prime-owner Mark Zuckerberg said. As there is a profit in investment, there is also a loss.
Keep that in mind. But as well as building a loss-accepting mindset, invest wisely to reduce losses. Do not give others the opportunity to delude you while you are the reader of the financeclout.com. And do not invest the whole savings.
Invest a part which you don’t need all of a sudden. Don’t get too frustrated if you don’t get it again. Even if you are stuck in the net, keep an eye on the hole through which you can get out.
Plan reinvestments of profit and capital
It is a very pleasant thing to get a return on the money invested. When you get your money back with a profit, keep some of it for your own expenses and re-invest the rest in a profitable sector. There is no substitute for this to increase wealth.
As your wealth grows, so will your responsibilities.
For example, you have to pay taxes. If you have become a Muslim, you have to pay Zakat on the accumulated wealth. Of course, paying taxes and zakat is a matter of joy.
Learn market analysis
Be careful about investing in the capital market. Learn to analyze the market carefully. Learn how to know the backbone of the company you decide to buy shares.
Never be chased by fake news. Many stories revolve around with partial or ambiguous truths. You can’t be tempted by that. Sometimes, there is a manipulation chance in the market, which criminals use. Be careful of these.
If you invest in other sectors, analyze that market as well. See how much the price of goods increases or decreases. Then guess the future of goods. If necessary, you can go to a finance consultant.
Manage risk if you don’t want to be frustrated
Lack of money can ruin your personality. The pain of starvation can put you in danger. If you don’t get treatment, your frustration will increase so much that you will misunderstand yourself.
To prevent this from happening, manage risk with money management and personal financial security in mind.
Give some money to health insurance, some money to education insurance, some money to own food fund, some money to house rent and utility bills fund, some money to winter clothes, some money to poor and neighbors and relatives. If you can proceed in this way, your financial plan will be excellent.
Do not keep all eggs in one basket
This is a proverbial sentence. Perhaps Warren Buffett said this sentence too much. The sentence is, “Don’t put all the eggs in one basket.” But if you put all the eggs in one basket, if the snake can reach the eggs, then it will eat all the eggs.
If you invest your money in different sectors or if your storage space is different, you will be less at risk. What we do know is that not all businesses go bankrupt at the same time and not all banks go bankrupt at the same time.
Make some investments in real estate
Although stock market is a good investment platform, invest some money in real estate. Investing in land is a good idea. If you invest some money in land, it may not make a quick profit, but other investments will give you a sense of pleasure as a security sign.
It requires being a happy person. In many cities, like cities in USA, property prices rise by at least 25% in three or four years.
Income also comes from renting that property. Income also comes from the trees planted there. All in all, more than 100% profit is obtained by investing in land. You can buy gold and you can also buy bit coin.
Read: Personal Money Goals.
Final words
Investing will increase your economic momentum. Although 2022 is difficult, you can easily cross the recessionary economic canal. You can form alliances with people close to you to learn investment activities. This will make your job easier.
It is my belief that your plan will be enriched if you take advice from the above points in personal financial planning. If you have any extra points in your head, you can let us know in the comment box. May, your personal economy become prosperous.