Financial planning: Do you know if you are on track to reach your goals?

Many will set goals in life, but only a few will achieve them. But, the Covid has taught many lessons to people and they realised the importance of health and wealth. Many of them have spent their hard-earned money on Covid treatment, which made them penniless in the long run. However, we need to plan everything in life by dividing money equally on investments, health insurance and others to sail through without hiccups as the future has become uncertain due to the Covid. Plan your future according to your needs by investing wisely and reaping rich benefits to lead a tension-free life.

Hyderabad:Life is a challenge, face it whileproper planning will make you lead a stress-free life, but if you do not have planning, you will be left in the lurch. For instance, we have seen a lot of unexpected events due to the Covid in the last couple of years. Many families across the country are facing health emergencies and financial burdens. The pandemic has turned people's lives upside down and it's once again changing its form and throwing a gauntlet at people. In this backdrop, we need to protect our physical, mental and financial health.

Financial planning: When there is uncertainty in life our financial plans go awry. However, with a little care, you can put them back on track and can start anew. However, how is our financial health in the first place? Need to know. For this, we have to question ourselves. First, what can we do to help ease the way? Need to know what to do now in terms of past experiences.

Retirement plan: Retirement planning should begin as soon as we start earning. We should invest in PPF, national pension schemes and annuity plans. Apart from that, you can invest in gold, real estate and other investment schemes that should also be considered, which would bring dividends, at the time of retirement.

A)Retirement plans have not yet started.

B)Has a retirement plan, but there are not enough investments.

C) Retirement investments are continuing as expected.

Emergency fund:Many people do not know how to cope with unforeseen expenses and for some, it is almost impossible. A similar situation has plagued many for two years. Hence, every family should give priority to the emergency fund. Only then you can avoid landing in debts and withdrawing existing savings and investments. Make sure you have an emergency fund that lasts for at least six months.

A)No emergency fund.

B)There is an emergency fund, but used for unforeseen expenses.

C)No emergency fund has been used till date.

Insurance:Insurance policies give you the strength to bear the financial burden of unforeseen circumstances. In 2020 and 2021, many people used health insurance. Life insurance policies will help us when something happens to the head of the family. Another important factor we need to have after an emergency fund is insurance.

A)No insurance policies.

B)Have health insurance and claimed in the past.

C) The need for a health insurance policy has not yet been arrived.

Debts are not a big deal when you need money urgently. But, the financial burden is inevitable. Personal loans come with 10% to 20% interest. Credit cards carry an interest rate of 40% per annum. Our financial situation is in danger of collapsing when we take loans at higher interest rates.

A)Taken a new loan in the past and had trouble repaying EMIs.

B)Taken loan, but not faced any problem in repaying EMIs.

C)No loan has been taken so far.

Investments:Investment is the best option to achieve long term goals. You can start investing up to Rs 500 and there have been many instances in the last two years where people have stopped their investments. Now again it is time to think about how to start investments in the context of the third wave of the pandemic. It is always advisable to continue investing in small amounts.

A)Already discontinued SIP and other investments.

B) No investment has been taken up for some time but did not stop the old ones.

C) Started new investments.

First,choose what applies to you in each topic

If you get more 'A's in the aforesaid topics.. you need to be financially careful and set up an emergency fund, pay off high-interest debts and divert surplus funds to investments. If you get more 'B's .. you should set up the emergency fund and insurance requirements should be reviewed. Be prepared to restart financial plans that were in vogue before the pandemic. If your answer is yes for more 'C's ...you are financially stable and maintain that balance. You will not have any difficulty in reaching all the goals, says B Gopakumar, MD-CEO, Axis Securities.