financial planning tips for couples or new parents, financial planning USA, money saving tips, personal financial planning tips

Every human being wants to become rich and theirs only one way by workings hard.

If in today’s world, you earn 10k or 20k, 100k or 200k it’s not sure whether you will be rich or Poor

Your financial planning will be going to tell you about this

So, Today we going to talk about financial planning

how can we become rich in the long term

if you are 20 right now and when you turn 60. then you will be Rich

How? We going to talk about all the strategies in detail

We have to understand some principles before understanding this

Suppose there are two friends, the story that I have already told you and you can check that blog here and you will also get a link in the I button and you can see the blog of that post here.

Suppose there are two friends, a Friend in which earns 10k per month and the other one earns 100k per month, but

But the person who earns 10k saves 5k every month

and the one who earns 100k, doesn’t save anything and spend all the money

As the times pass by and after the 40 years. that person who used to say 5k every month, can earn a lot using compound interest.

I have also made a video on this, please do check it for calculating compound interest.

So he will earn a lot of money,

but the one who was earning 100k every month, how much he going to have?

Only his current salary but the other one was also getting the interest in his savings.

So this is financial planing, a way of becoming rich

lets first understand about the investment

how we should invest in the right way?

Basically, there are three different types of investments

the first one is in the stock, the other one is Shares and the last one is cash

if you are earning x amount and want to invest it in saving

you can put that money in a savings account, or infix deposit or you can withdraw it and save it in your home that money won’t get multiplied.

you will get 6 percent return from bank

but if you check the growth rate of the USA and is higher than 6 percent

then indirectly, its a loss for you

if you think of taking a interest from your saved money

in share market, you invest the money for a long period of time and you might get 12-20 percent return.

you can see the stats of coca Cola company in this photo

you can see that amount of growth in coca cola shares had in past

if you would have invested in the stock in the beginning or you parents would have then just think of the money you might have today.

Next things is Bonds

Bonds can be government owned or Privately owned

bonds are just like giving a loan to a company and you will get interested in that I have made several videos on Finance

and will link the videos in the I button above

Because it’s not possible for me to tell every topic in detail as it might get lengthy

So it better to check out that videos if you dont know about it

The third thing is cash and we should have some for emergency

we get in a situation, where we need urgent cash

Then what you going to in that case? go for Bond, FD?

probably not or you can withdraw money from the bank, but I am saying to save money in the bank

and thats why you should always have some cash

next is which is really bad in our country is insurance

in our country people do not like to do a insurance

you need to have a medical claim and life insurance too

I will tell you the reason

you may be earning alot of money but if in your family

gets a desire and due to this your job or business gets over

so your revenue gets stop

that way you need insurance

so if you had an medical insurance,then it had

all your problems gets reimbursed there

next is life insurance, means if something happens to you

then your family gets save there via this life insurance

suppose

you are earning USD 1 lakes a month

and you are saving USD  20000 a month or USD 30000

the sand you spent USD 70000 according to your status

but if something happens to you then

where you will get these USD 70000

will after you your family living of standard will worse?

so here life insurance will help you out

in this suppose I earn USD 1 lakes per month

and USD 12 lakes per months

and 12 lacks * 20

means USD 2 crore and 40 lacks this much you can earn if negotiate and plan properly

So do check the terms and plans and why ti is for this much of time?

if somethings happens to you then all the money is given to your family

and if they put in a bank then the interest will be

as much to run your family

means if my income is Rs 1 lakh and if I will put the insurance money in the bank then I will be getting the interest of Rs 1 lakh per month

so that’s why this is important

some plans like life insurance companies in usa you need to check both the plan

there it says you have a life insurance

and you need to invest in it too

like above

but if you calculate you will be getting the return to vary less

so play smartly and understand all the terms and conditions wisely

next is retirement planing

so how I will be running my home after the retirement

so for this too they have a lot of plans in it,so if you are under 30 then you must have a retirement insurance

I too had this plan

1 tip more

things which is required do take that

and do take one thing which is good

this will reduce your overall costing, in Shopusa, amazon you have a debit card EMI option

so you need a product but you did not have an income for that, suppose you need a product of USD 5000

and the other product is of USD 10000

you need the 2nd one but for the alternate, you are having 1st one

so you can buy the product in EMI and about credit and debit card is

is credit card is good or bad

well it is good ,I personally don’t use it

why I don’t use is because

if I am earning USD 2000 months then I could only buy a product in credit for USD 2000

how it works is

basically you don’t have to pay any interest for 50 days

so basically if my credit card limit is Rs 1 lakhs and I wanna to buy a product

so the difference between credit and debit card is that

in debit you get money from the bank and in credit you get a loan from the bank

and the loan is interest free for 50 days and after that you need to pay them the interest

and the interest rate is too high

now I did not pay them for 51 days then they will be charging me the interest for 51 days per annul

so now a days you have a option of auto-debit for the 50 days

so why you need a credit card,lets understand

you need not to give then money for 50 days and if you keep money in bank for 50 days then you will be earning the interest of it

so if you want then do it

but keep in mind to save yourself from the trap

guys have a salary of USD 20000 and their expenditure is of USD 50000, so they keep on using the credit again and again

so here they provide an option, if you have a credit of USD 25000, then you need to pay Rs 5000 now and the rest in EMI

but strategically you paid Rs 5000 now and paid a high interest in this

means interest/12 months compounded, and you will be paying the same amount afterward

so you had a loan of USD 1 lakhs

and you paid Rs 5000 and you need to pay USD 95000

and you will be charged interest on USD 95000 and if will become USD 1 lakhs again

so basically you are paying to them from your home

so this is how credit card works,people et attracted easily to these schemes and gets trap in a web

I have a Rs 1.5 lakhs limit,and I can have anything now and this puts them in a trap

and if you are in a trap then have a personal loan and you can pay them easily at 18%

so with this our video ends here,do like and share

if someone unable to do a financial planning then do send them this video

so share with your family members as they think that life insurance companies in usa, in USD 5 lakhs you get Rs 5 lakhs

so do calculate the plans before having it, I am not saying life insurance companies in usa is bad or good,

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