THREE SIMPLE FINANCIAL TASKS THAT LOOKS TOUGH 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.
In the beginning, these tasks may appear harder. However, they are quite simple if you understand the basics of it and start practising it.
Before you initiate with these tasks, remind yourself, the biggest hurdle between you and success is your own mental blocks. Learn to overcome your mental blocks, and automatically you will realize that no task is as tough as it seems to be. It is your attitude at the beginning of a task, more than anything else that affects successful results.
Simple Financial Task That Seems To Be Tough
Budgeting at the onset seems to be very challenging and oh no task for most of the people I have often conversed with. Budgeting in simple terms is nothing but being aware of where your money is going or where are you spending your money. There are quite 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 into 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, 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 to become online. Hence, making income tax return much easier and user-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 to happen faster as well as without any conflicts.