Three Simple Financial Tasks That Looks Tough From Outside
We all want to become rich and live a simple life at the same time. But no one wants to spend time or put much effort to manage money. Isn’t it?
I have often observed people run away when it comes to managing their finances.There are a few tasks like evaluating your expenses, budgeting, doing away with unwanted expenses, evaluating your investments, this needs deep understanding.
At beginning, these tasks may appear harder. However, they are quiet simple if you understand the basics of it and start practicing it.
Before you initiate with these task, remind yourself, the biggest hurdle between you and success is your own mental blocks. Learn to overcome your mental blocks, and automatically you will realise that no task is as tough as it seems to be. It is your attitude at the beginning of a task, more than anything elsethat affects successful results.
Simple Financial Task That Seems To Be Tough
Budgeting at the onset seems to be very challenging and ohno task for most of the people I have often conversed with.Budgeting in simpleterms is nothing but being aware of where your money is going or where are you spending your money.There are quiet a number of books and blogs available on this topic.
How to create a budget?
To begin with creating your budget, you first need your income and expenditure sheet in hand. You can have these details in a simple excel format.Check whether the money going out is more than the money that’s coming in. Tally it. Later, you can set your financial goals to your budget.
In order to track your future expenses you need to take clues from your past expenses, also you need to add annual expenses like insurance premiums etc., apart from your monthly expenses.
Income tax, taxes, tax planning seems to be terrifying terms for most of us. Although, tax filing and tax planning are complicated, but once we take a little extra knowledge on it, it does not appear to be as difficult as it seems to be.With the bloom of digitalization, income tax filing has too become online. Hence, making income tax return much easier and use-friendly experience.
#3 Estate Planning
Estate planning is nothing but systematically planning about how your assets and your property need to be distributed between your legal heirs in your presence and/or after your death.
In doing so, you need to list down all your assets – movable, immovable, financial etc.You need to also decide which asset will be passed on to whom, mention that.Update all your investments and insurance plans with inherent value and beneficiary name.
Estate planning helps your legal heirs to get the transmission happen faster as well as without any conflicts.