The world has undergone change at a societal level and on account of changes in the way expectations on relationships are affecting families. As per a statistics, almost 30 per cent of relationships are heading towards splitsville.
How does one then plan for a life alone financially?
1. Define your financial goals
Many a time, the mindset is: “What/who am I setting the financial goal for?” The answer is you. If you are financially sound only then can you help others.
It starts with goal-based thinking. It can be created on the “GOAL” Approach.
G: Generate a wish list
O: Organise resources
A: Allocate in order of importance
L: Learn from mistakes and correct them
2. Create a pool for emergency expenses
It helps to create a pool for emergency expenses to weather the ups and downs in the fast changing world of today. This is relevant for both self-employed as well as professionals. Apart from this, a medical insurance is a must to avoid depletion of precious savings.
3. Invest in yourself
Are you in the top one per cent of your field? If not then what is your plan?
Tony Robbins the world renowned author and coach, recommends that one need not reinvent the wheel. One can look at what has worked for others who have strived to go up the ladder or have created their ladder and avoid their mistakes.
It could be academic, it could be development of leadership skills, volunteering for an association. It is about what is relevant for professional/personal growth.
4. Create a fun plan
It is important to be prepared financially. It helps to allocate savings prudently. One person we know had to enhance their savings rate, she did it to her credit .To ensure she stays on track we helped her with a “fun plan”—a plan to spend on travel and things she likes. That helped to sustain her focus and more importantly achieve her goals.
One of our other clients planned a trip to Everest Base camp using our inputs.
5. Write a will
It is important to write a will for one’s assets to be transferred. This is as applicable to people in the mid-thirties as well as a higher age as life is unpredictable. As long as we are financially in shape, the journey becomes easier.