How to plan finance: Best financial advisor in Kolkata

No one would care about your financial situation more than you, so it is very important to have a financial plan for yourself. If you have a solid financial goal, it will help you save money, afford things that you want, and achieve long-term goals like saving for college and retirement. In our opinion, financial planning is much needed majorly for women. Due to the gender wage gap. But how to plan finance? Let us learn about it.

How to plan finance

Below you’ll find the top 10 steps on how to plan finance:

  1. Note down your financial goals

There is no financial success without a financial goal. You need to know your goal to accomplish it. Moreover, when it comes to finalizing a financial goal, it is important to know that your goals are well thought off and organized.  It is amazing to have big, and dreamy goals. But make sure you break them into smaller parts. That way, you’ll be completing baby steps at a time, and success won’t be far away from you.

  1. Planning an emergency funding

On all of the goals for the future, one goal should be an emergency fund. Life is uncertain and you never what happens tomorrow, and you’ll be out of funds. So, make sure you are prepared for it or else debt is not far away.

  1. Reimbursing the debts

While creating a financial plan, one should also make sure that you have a plan to either reimburse the debts or to come out of them.  These high-interest rates, large monthly payments, and debts might end up damaging your credit score, so it’s better to clear it off as soon as possible. Have a debit pay-off strategy and be persistent but constant when working towards becoming debt-free.

  1. A financial plan to invest

If one is serious about building wealth, then the investment is the first step. But before you start investing your hard-earned money, make sure you have proper knowledge about where you are investing, what are your objectives, and the risk.

Investing is a long-term goal, and it requires major commitment if you want your money to grow. Now, what if you require the money in the short term? In that scenario, hard-earned money comes into the scene. Putting aside your emergency goals, one can save money for your short-term goals i.e., the money required in 5 years or less.

Before investing, it is important to have a thorough understanding of any investment. Know properly about the stock market, real estate, or small business. The plan to invest must be added as the part of your monthly budget where a certain percentage of your income goes into the investment part.

  1. Getting the correct insurance

After working so hard to acquire your money, the last thing you want is for an unexpected occurrence to wipe you out. Insurance is a backup plan to protect your assets in life circumstances that require a large amount of money to resolve.

The insurance coverage should include health, auto, disability, life, home or rental, and business. As you want to protect everything of major importance or high value to make sure your family is safe financially.

  1. Having a right insurance

With the correct insurance, a huge calamity can be reduced to a minor annoyance.

  1. A retirement Plan

To live a life king size after your retirement, one should plan adequately for it. You have to know, about the requirements after your retirement, of course considering inflation and what’s your plan to save and invest in advance for that stage of your life.

Although retirement is way seems way too far, or too early to start or think for. But planning for retirement is equally important as planning for your kids, insurance, and anything else.

  1. Plan for taxes

Taxes might sound annoying, but they aren’t leaving you alone anytime soon. So, one should make sure that your long-term income projects include taxes. If you don’t plan for taxes, it can have a major impact on your cash flow.

Additionally, one would want to look into the tax-saving investment options and have knowledge about the relevant tax deductions one can apply to help you save money on tax payments. Try sitting with a tax accountant or financial planner to make sure your planning is satisfactory.

  1. Create an estate plan

Not a lot of people think about estate planning, but then it’s also an important part. It helps you to know what exactly happens to your assets after you are gone. It includes a listing of the assets, creating a will, and making it available for the people who’ll be needing it after you are gone. A financial planner or an estate lawyer will help you set your things.  

  1. Reviewing your financial plan frequently

Now that you have a financial plan all planned and worked out, you need to keep reviewing it and make the necessary modifications in case your goals or situations change.

For example, your insurance might need a change, your risk tolerance changed over time, or you got married or have kids. At a minimum, you would want to check your financial plan at least every 6 months.

When you check frequently, it is easier for you to deal with any occurring, and saving yourself from setbacks, and achieve your financial goals. Let us think about what we do to maintain our health? We brush our teeth and shower every day to keep ourselves clean and hygienic and to avoid illness.

When you check infrequently, it’s easier for you to deal with unplanned life occurrences, bounce back from setbacks, and accomplish your financial goals. Think about what you do to maintain your health. Also, because you do it so frequently, it’s become ingrained in your daily health-maintenance routine – and the same may be said for your finances!

  1. Stick to your budget, don’t overspend, and learn from your mistakes.

A person’s journey to financial independence won’t be easy. There will be tough days, weeks, and even months. Chasing a goal of financial independence that is much tied to delayed satisfaction is not always fun. But it’s doable.


The question – how to plan finance? Is no longer an issue. One should have a solid plan for your finances and avoid overspending. You will find out over time, that everything that you did, was worth it and it’s fruitful. To know more, refer to Welfin, one of the best financial advisors in Kolkata.


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