Financial planning enables you to chalk out your long as well as short term financial goals easily. And attaining your financial goals is directly related to your financial stability. In this article, let us find out why you are required to give prime importance to tracking your expenses and plan your finances especially when there are so many financial apps to fall back upon when it comes to investment, savings, and returns. The article will deal with the following aspects, namely,
- Tools that can assist you in achieving your financial goals
- Reasons why financial planning is crucial
Tools that can assist you in achieving your financial goals
These days financial planning and savings has become much easier as there are several tools that can assist you in the same. The most sought after tools are the financial planning apps that have proved to be effective. Why is it so? The reasons can be summarized as below-
- These financial apps can be easily downloaded and installed promptly
- Some are free, some are offered on trial while few have to be paid for.
- They are available on your mobile or any other hand held device which makes them easily accessible regardless of wherever you are.
- There are many fields available in the apps that allow you to put the accurate inputs to get the best results or returns.
- Few are investment apps that will help you in investing in ETFs or Exchange Traded Funds and other investment vehicles.
- Mostly the interface is user-friendly
- Menus enable easy and hassle free navigation
- Even if you are not into trading or investing, these apps can be used and do not require you to know rocket science to use them
- Some of the financial planning apps also offer the privilege of free usage for the first month
Regardless of the app you are using, make sure you are able to get answers to the following before you take the plunge-
- What are you using the apps for
- What you expect from app
- Whether or not you are confident in using it
Reasons why financial planning is crucial
Given below are the main aspects that you ought to take into account when setting your finances straight.
Keeping track of your cash flow is the first step to stability financially. Planning your taxes, frugal spending habits, and budgeting can do justice to your cash flow status.
You choose your investment vehicle depending on how much you earn, the amount you can keep aside for the rainy days, your disposable income, and the expense you incur on your lifestyle.
This is directly related to your cash flow. Spending patterns influence your cash flow, which in turn impacts your capital.
Assets can serve as a “cushion” or “buffer” when you are in dire need of some cash. However, it is important to remember that there are several assets that are attached to liabilities. As such, it is essential to determine the actual value of your assets after taking into account the liabilities.
Opt for investments that are highly liquid in nature. In that way, you know you have liquid cash to fall back upon when you need it the most.
Lifestyle changes and standard of living
In order that you save money and keep your hard earned cash from getting drained off ‘unceremoniously’, opt for changes in your lifestyle. Once in a while it is alright to lead an extravagant life but not always. In times of trouble, you shed the frills and fancies to maintain financial equilibrium in your life.