A financial plan is the bedrock of financial success. Just like a GPS helps you navigate to your destination, a well-structured financial plan ensures you reach your goals
As a Certified Financial Planner and Coach at the Richness Academy, I specialise in helping people from all walks of life—whether working professionals, entrepreneurs, young couples, retirees, single mothers, or divorced women—achieve financial freedom. In this blog, I will walk you through 15 actionable strategies that will help you make intelligent financial decisions, empowering you to live a life of wealth, wisdom, and happiness. It is time to stop waiting for financial freedom and start planning it today!
1. Define If You Are You are a Spender or a Saver?
It is crucial to understand your relationship with Money. Are you a spender who cannot resist the latest tech gadget or fashion item? Or are you a saver, always looking to squirrel away as much as possible? Let me share an example: Meera, a 32-year-old from Delhi, was a saver—she saved every penny. However, she was not enjoying her life. She was so tight-fisted that she could not bring herself to do it even when she had the Money to travel or indulge. We found a balance through our discussions—she allocated a fixed amount for both savings and leisure. Over time, she enjoyed life and secured her financial future.
Action Plan: Identify whether you are more of a spender or saver. Set a goal to balance both. For example, saving 70% of your income allows yourself 30% to enjoy life without feeling guilty.
2. Why Not Start with a Plan
A financial plan is the bedrock of financial success. Just like a GPS helps you navigate to your destination, a well-structured financial plan ensures you reach your goals. Take my client, Arvind, a businessman from Mumbai. He came to me feeling lost with his Money, unsure how much he needed for his children’s education, retirement, and dream home. We worked together to break his financial goals into smaller, actionable steps—establishing emergency funds, SIPS, and insurance plans. Arvind’s financial life was organised within a year, and he could see a clear path to achieving his goals.
Action Plan: Start by setting clear financial goals for the short, medium, and long term. Break these down into smaller steps—start saving for your children’s education or retirement, and create an emergency fund.
3. Be a Budget Planner
Many people think budgeting is restrictive, but it is the opposite. A budget is the key to freedom. Neelam, a marketing professional in Bengaluru, came to me after accumulating debt from impulsive spending. We set up a budget that allocated a certain percentage to necessities, savings, and entertainment. For the first time, Neelam felt she had control over her finances. She was even able to pay off her credit card debt much faster.
Action Plan: Create a monthly budget using simple categories like essentials (rent, food), non-essentials (entertainment), and savings. Use apps like Mint or YNAB to track your expenses. Stick to your budget, and review it every month.
4. Being a Savvy Smart Saver
Saving does not have to be hard. It is about building a habit. I remember working with Ramesh, a factory worker from Gujarat, who found it difficult to save for the future. His habit was to spend whatever was left after the month. Together, we set up an automatic savings plan. Every month, 10% of his salary went into a high-interest savings account before he spent it on anything else. In just a year, Ramesh had accumulated enough to invest in a mutual fund, growing his wealth in a smart and sustainable way.
Action Plan: Set up an automatic transfer of 10% of your monthly income into a separate savings account, even before you pay your bills. This “pay yourself first” rule will help you build wealth effortlessly.
5. Are you a Savvy Spender
Smart spending does not mean living frugally; it means being thoughtful about where your Money goes. Priya, a young professional in Chennai, struggled with spending Money on unnecessary luxuries. She loved shopping for clothes, but when we analysed her spending habits, we discovered that most of her purchases were impulse buys. We worked on a strategy to budget for her clothing needs annually, and she started saving for high-quality, lasting pieces rather than buying trendy, low-cost items.
Action Plan: Before you buy, ask yourself if you truly need it or if it aligns with your long-term goals. Wait a week before making big purchases to ensure you really want it.
6. Have you Become Financially Independent
Financial independence means no longer relying on others for financial support. A client of mine, Sunita, a 58-year-old widow from Pune, was financially dependent on her children. After we worked together to set up a steady income plan through a mix of fixed deposits and dividend-paying stocks, Sunita now has the freedom to live independently and comfortably.
Action Plan: Set up passive income streams that will cover your living expenses. Explore dividend stocks, real estate investments, or even fixed deposits with higher interest rates to secure your financial future.
7. What about Your Bank accounts and Money
Banks can help you manage your Money efficiently, but many people are unaware of the best ways to leverage them. Akash, a retired engineer in Delhi, had multiple accounts but was not getting much out of them. By shifting some of his funds to a high-interest savings account and opening a fixed deposit, he could earn more from his savings while keeping his Money safe.
Action Plan: Regularly evaluate your bank accounts to ensure you’re using them effectively. Look for high-interest savings accounts, low-fee bank accounts, and other financial products to help you grow your Money.
8. Should You Be Borrowing Money
While borrowing can sometimes be a strategic move, it should always be done cautiously. Rani, a small business owner in Jaipur, took out a loan to expand her business. However, the repayment terms were unclear, and she ended up struggling to manage the debt. We renegotiated the terms and developed a clear repayment strategy that allowed her to grow without the constant worry of interest piling up.
Action Plan: Borrow Money only for investments that will yield returns. Always ensure you understand the terms of your loan and work out a solid repayment strategy.
9. Are all Credit Cards Money Machines?
Credit cards can be both convenient and dangerous. I once helped Kiran, a software professional from Hyderabad, who was caught in the cycle of paying just the minimum balance. This kept him in perpetual debt, especially with high-interest rates. We transferred his balance to a lower-interest option and set up a strict plan to pay it off, reducing his financial stress significantly.
Action Plan: Always pay off your credit card balance in full each month to avoid interest. If you already have debt, transfer balances to lower-interest options and create a strategy to pay it off as quickly as possible.
10. Is it Tempting for You to Borrow
The temptation to borrow Money through “easy credit” options can be hard to resist. I worked with Rahul, a young Pune professional who was constantly offered “Buy Now, Pay Later” schemes. After we discussed the long-term costs of borrowing for non-essential items, Rahul understood how easy it was to fall into the debt trap. Instead, he decided to avoid these schemes and focus on saving for big purchases.
Action Plan: Resist the temptation to borrow for non-essential items. Always ask yourself if you can afford the purchase without borrowing, and save up for it instead.
11. Are You Always Growing Your Own Money
Investing is the most powerful way to grow your Money. Amit, a 40-year-old entrepreneur from Bangalore, was unsure where to invest his savings. After a detailed conversation, we decided to diversify his investments into mutual funds, stocks, and real estate. Over time, his wealth grew, giving him the freedom to focus on his business without financial worries.
Action Plan: Start investing early. Grow wealth using mutual funds, SIPS, or stock markets. Diversify your investments to balance risk and reward.
12. How much risk to take and for What Rewards
Every investment carries some degree of risk, but the reward can be worth it. Arvind, a small business owner from Chennai, wanted to invest in stocks but feared losing his Money. We worked together to understand his risk tolerance, and I helped him start with low-risk equity funds. As he became more comfortable, he started taking calculated risks with higher returns.
Action Plan: Assess your risk tolerance before investing. If you are unsure, start with safer options like fixed deposits or low-risk mutual funds, and gradually increase your exposure to riskier assets.
