How to Create a Monthly Investment Plan (and Stick to It)?
Welcome, October! Diwali is just around the corner. You might have some travel plans this month. Why not we together create a plan? Not a travel plan, but a monthly investment plan! Here are five guidelines for creating a monthly investment plan and sticking to it: Take Note of Your Current Financial Position To start something, you should first assess where you stand. Similarly, to create a monthly investment plan, you should examine your income, savings, and expenses. If one’s standard of living is growing faster than income, then there’s a need to either increase income or decrease expenses. It will also help you prioritise which expenses are necessary and which ones you can cut down. Failing to do this can derail one’s financial well-being. Account for Festive Expenses With the onset of festivals such as Dussehra and Diwali, it is better to draw up a festival budget where you can list down all your necessary spending needs and thus make provisions for your investments to be made in advance.
Drawing up a budget will help you stay clear regarding how much to spend and how much to save. Decide your Goals As a golden rule of thumb, one should spend what is left after saving, not the other way around. This helps in practising financial discipline, as spending money on material things that provide instant gratification is effortless. Also, this ensures you do not compromise your savings and investment decisions. After the necessary investments have been made, you are free to spend whatever is left over for the month without much thought! Read More About Monthly Investment Plan