How to become rich fast ? Best Financial planning

How to become rich fast ? Best Financial planning 

Read this blog for simple financial planning methods to achieve all your financial goals.

Financial planning is divided into six segments these are

1. Saving
2. loans
3. Insurance
4. Investment plan
5. Retirement Plan

1. Savings

Thumb rule or saving is calculate monthly expense of your family. Save 6 month money for your family in banks saving account.This is called emergency fund.

2. Loans

Pay high interest loans like personal loans, credit card loans before starting to invest. Any lone which have interest of more than 12 % repay these type of loans.Loans like housing loans give you benefits in tax deduction also so keep these type of loan.

3. Insurance

Insurance is divided into two segments. Life insurance and medical insurance

Life insurance  is the contract between the  policy holder and insurance provider where policy holder promise to pay the premium and insurance provider promise to pay the amount upon his death or critical illness. Generally in families life insurance is suggested to the earning member of the family which cover his 20 year of income in case of accidental death or critical illness. To calculate the life insurance premium calculate your annual salary and multiply by 20 . This is your life cover insurance amount .

Health Insurance is compulsory for every one in family. Plan life insurance of 1 lack  for each member of the family .

4.  Investment Plan

Investment is divided into Equity, Gold, and Real state. Equity is divided into stocks and mutual funds. If you are young and your retirement plan is not near plan for investment in equity stocks after consulting with financial service agents . If you are not comfortable with stocks plan investment in mutual funds it is the best investment plan which provide better return in than gold and real state in long run.Plan at least 20 % of your salary into investments which will help you to achieve your financial needs and make you rich fast.

5. Retirement Plan

Check the sip calculate and plan you retirement plan link is below plan for good mutual fund with annual returns more than 11 % https://cleartax.in/s/mutual-fund-calculator Mutual fund link https://www.moneycontrol.com/mutualfundindia/#tbdebtlongterm