Thinking of starting an investment? As with any other new venture, it is always best to plan before you start investing. Planning will help you evaluate your current position, your future goals and the best means to achieve those goals. You should plan before you start investing simply because it will give you an idea of how much you can invest regularly to achieve your goals.
1) You can manage your income more effectively through planning. This will help you understand how much money you’ll need for expenses and how much you can save/ invest.
2) You can monitor your spending patterns and expenses. Then with careful budgeting you can save more.
3) You can analyse your current financial situation, your standard of living, your future responsibilities and of course inflation. This will give you an idea of how much you need to accumulate, say 10 or 15 years down the line.
4) A proper planning will guarantee that your family will be financially secure even in your absence, such as with a well calculated life insurance.
5) Planning will help you to set a financial goal and thus will in turn motivate you to invest wisely.