How to start planning your finances

[{"selector":"#anim-7d4ab091-71e9-4dd1-bffb-b434efc82607","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c33626ef-dfc9-4101-ad3f-e10f27f9327c","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Since he started earning, Naman has not been very careful with his finances though he has managed to buy a house and even make some investments.

[{"selector":"#anim-a7049988-cec8-4592-b3f4-2c4e3308cc66","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4d6421c7-645d-4a65-b832-0eedcfe6f0be","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] While he has mostly been able to meet his obligations on loans repayments and expenses,

[{"selector":"#anim-05f4152f-7b6e-43b7-9a37-1149f67b184f","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a034a7eb-0cf1-470a-b0f2-66b862627ea7","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] there have been times when he has been short of funds. R:

[{"selector":"#anim-962fe9c0-001c-4722-b8e2-6c4229efe9a2","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-22185996-2038-42a0-a146-9c5e1823082b","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Naman now feels the need to plan for his financial future. He wants a simple method that will help him assess his current situation and take control of his finance

[{"selector":"#anim-e07479b7-2280-415a-b3c0-c56702094765","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-356ba46f-efbf-4fa4-8055-16ec8adbd46a","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] An efficient way for Naman to take control of his financial situation is to assess his personal net worth.

[{"selector":"#anim-38e06510-ba06-4785-adb5-4dffb116afef","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-53c025bf-c292-4d33-8188-35d874f1e0f9","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] It will tell him what his current position is and where he is going wrong. In his effort to better his net worth, he will improve his saving and spending habits

[{"selector":"#anim-8da3406c-50d6-4814-8a99-cbd1514ec32d","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e4a4ab93-a834-4d15-b508-069daa079462","keyframes":{"transform":["translate3d(-127.27273%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] To calculate his net worth, Naman should list all his assets that have a realisable value and all his liabilities.

[{"selector":"#anim-53554a84-b066-49ec-8025-af37289c54dd","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-127925e3-b3a2-4b1b-ba2c-30632b4584a8","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] He should categorise his assets under different heads such as cash, stocks, bonds, mutual funds, real estate, gold, cash values of life insurance policies Read more at:

[{"selector":"#anim-3fd3620d-aa2d-4f65-ae3f-fe29a6014414","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-33cae409-5002-4b04-9438-2273049ff4d7","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] retiral benefits and personal assets, including jewellery, furnishing, art and collectibles. Naman must consider the current market value of the assets

[{"selector":"#anim-ce640565-f201-4446-86ad-edb54ec45199","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ee519fdf-1805-4c87-94b1-092d1cfd645c","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] which may be different from what he paid for them. From this, he must reduce the current outstanding balance on all his liabilities, such as loans and credit card dues.

[{"selector":"#anim-8b53862f-59c4-4205-89a3-b3a797020b64","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-29b28c92-506c-41e7-9c1e-e4ba410b110e","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] A positive net worth implies a situation where Naman is able to meet all his obligations. A negative one will mean that Naman must reduce his debt as he is facing insolvency Read more at:

[{"selector":"#anim-e9a5d4a7-3b39-47f1-bf0b-f713c67a2526","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-98aacf13-5f06-4305-a9bf-f404bcdc38b9","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Having an understanding of a positive and growing net worth will help Naman make right financial decisions. He will focus on reducing debt, and this will lower his interest costs and leave more for investments. Read more at:

[{"selector":"#anim-6ecc3fc0-cdd3-4f4a-b6c7-6f839f3aba7e","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d29d4f4e-475a-430d-bdd4-86db4c0f22e3","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] A study found that taking a hot bath about 90 minutes before bed could help people fall asleep more quickly.

[{"selector":"#anim-1c0f4e35-ff55-4b08-b264-d35811b4a90a","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-699d6607-1cda-4fc8-a649-0c0a8e27836f","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] A study found that taking a hot bath about 90 minutes before bed could help people fall asleep more quickly.

[{"selector":"#anim-9affaaa9-7968-4cfd-948b-daba40d4edd9","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0cd336f8-3cda-40fb-bad8-0982ec2c4c6b","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] A study found that taking a hot bath about 90 minutes before bed could help people fall asleep more quickly.

[{"selector":"#anim-e9f72e0c-64df-40d9-86e6-b12ebd038d59","keyframes":{"opacity":[0,1]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-de304957-6c8e-4e3b-9ec3-5087cfd307a4","keyframes":{"transform":["translate3d(-122.37762%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":450,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] A study found that taking a hot bath about 90 minutes before bed could help people fall asleep more quickly.