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Financial Planning for beginners

Financial Planning for beginners – The easiest way to achieve financial freedom through the proper management of your finances is basic financial planning. everyone needs to have good financial planning to achieve their financial goals. you can also take help from a financial planner or do it by yourself.

“The goal isn’t more money. The goal is living life on your terms.” –Chris Brogan

Three basic steps of financial planning for beginners:-

  1. Term life insurance
  2. Health insurance
  3. Contingency fund
  • Term life insurance(Financial planning for beginners)

The first step of basic financial planning for beginners is term insurance or life insurance. Life insurance is a product, which provides secure financial protection to the family of the policyholder.

Life insurance is extremely important. it is a kind of protection let’s understand a bit about insurance.

There is a lot of unknowns in life unfortunately when we wake up we don’t know what’s going to happen to us. something good may happen or God forbid something bad may happen too. And everything then changes if there are people dependent on you, if people depend on your income, if you have dependents, those dependents could be your spouse, your parents, or your siblings. Then naturally if something happens to you, they also will suffer and here life insurance plays important role in provides secure financial protection to the family of the policyholder.

Life insurance should be 10 times more than your annual income

(Life insurance = 10 times more than your annual income)

Choose a good claim settlement ratio company for insurance.

  • Health insurance

The second step of basic financial planning for beginners is health insurance. As we all  Know health is wealth so we need to have a sufficient health insurance plan.

It is an arrangement with an insurance company that can help you afford the costs  Of health care

It is a product that takes care of your medical bills

When you are admitted to hospital one of the biggest fears we have is. “How much will this cost me ?” Don’t worry that’s where health insurance plays a very important role. Health insurance helps you in your financial losses after suffering illness.

So before you make a decision, spend  Some time to understand it better.

Choose a good claim settlement ratio company for insurance.

  • Contingency Fund

It is a fund that may help you survive in an emergency or to meet the challenges at the time of an economic crisis is known as the Contingency fund

If any unforeseen financial trouble arises in the future we should sufficiently fund with us to manage our daily household expenses as well as our routine business expenses

A contingency fund may give you breathing room if  Your business needs urgent money or Salary isn’t paid or if you lose your job

The main purpose of the fund is for financial security.

digitalnat

hey there, welcome to profit advice. Iam Nikshay Chauhan and iam a student . I love to explore things, places, and facts, and iam from Himachal Pradesh. I have a lot of interest in finance, travel, and business. My main motive is to help people by providing them valuable content which is useful for them.

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