Financial planning is very important in life. This I have learnt through my life experiences. I had been staying on rent in Mumbai for around ten years. Every year the rent used to go up and we were not allowed to continue in the same place for a long time. I had to keep hopping from place to place while staying on rent. There was no stability of location. Observing all this I decided to buy a flat of my own. But saving that much of an amount is not that easy for a normal working class person.
I am into travel business. The kind of job I was doing was performance based and I had no fixed income. Some months I would be getting a good pay while some month I would not be paid at all.
So I decided to do a financial planning for that. I understood it will take a continuous effort for a long time to accumulate that amount. I started cutting down on budget and stopped all unnecessary expenses which I felt could be done without. Going out for lunch or dinner, visiting a salon, recreational trips and certain other expenses were done away with. I stopped doing any heavy expense for my baby’s extra clothes or extra toys also. Sometimes I used to feel the pinch, I used to have cravings for spending out but I used to console myself, (why u want all the things right now, have patience dear heart, time will come, I am working for you only😀) I had to go on if I wanted to save for my future plans. I observed the amount which I am paying as rent can easily be converted into the instalment which I shall pay to the bank for my loan amount.And once the loan is complete the home will be mine and also there will be no threat of shifting from one place to another with my school going son
Rent was the catch for me. Moreover the instalment will not increase year after year as the rent will.
Seeing all this I started saving and after three years of continuous effort I could save an amount which I could give as down payment. Though the place I could buy would be far off in the suburbs, but that was the best I could do at that point of time. Moreover if I don’t buy now at the given price, it will go further up in the future making it impossible to buy. Hence I decided to go on with the purchase. I went on a house hunting and after six months of running around I decided on a flat which I found suitable for me. Once I zeroed in on the flat and did the down payment, the next thing was the bank loan which took around six months of running around as my work from home profile was a deterrent. Finally the loan was sanctioned and the amount paid.
Now I am staying at my own place and looking forward to a better future awaiting me.
Five points for savings I have learned from my experience
- Plan for the goal you want to achieve
- Make small fds whenever it’s possible as per the bank balance
- Invest in the mutual fund
- Cut down on extra cost which is not disturbing your lifestyle
- Analyse and go for share market if you are very sure about the return in the time of requirement..Don’t invest much in case you have time bound (can be very good or vice versa…
Long way to go 