Financial planning

Taking care of income and expense balance carefully is called financial planning. Let’s understand the picture on essential and non-essential expenses. There are expenses which are mandatory like food, cloths, housing , education, marriage, illnesses etc. but there are expenses which can be controlled like expenses on luxury items like excursions, eating out, parties, liquor or expensive hobbies etc. This way we can save some money to meet exigencies or pay debts. It’s like preserving or saving water for family in a pitcher.

PLUG NON ESSENTIAL EXPENSES INCREASE YOUR SAVINGS

In financial planning we need to plan and determine family goals and then plan savings as well. For example, you want to save money for higher education of your daughter. In the picture the required amount and available time is calculated to understand necessary daily saving. The same can be calculated for months.