5 Financial Planning Tips for Salaried Employees

In today's dynamic world, it has become imperative for salaried individuals to equip themselves with sound financial planning. Effective financial planning for salaried employees can help strike a healthy balance in achieving financial freedom as well as supporting the family’s needs. If you are a salaried individual, seeking tips on financial planning, keep reading the blog. 

5 Financial Planning Strategies for Salaried Employees

Financial planning strategies are usually framed depending on your lifestyle and personal obligations. The following 5 personal finance tips can help you set and achieve both short-term and long-term goals:

1. Set Financial Goals

Setting sound financial goals is the cornerstone to building your stable and financially secure future. These goals can be to travel to a dream destination, own a home, or finance your kids’ education. However, categorizing them as short-term and long-term goals can serve as a disciplined method to guide you through your financial journey.

2. Frame a Budget

You can achieve financial stability by creating a practical budget. Start by dividing your total expenses into different heads such as important needs and miscellaneous. Crafting a budget can help you to keep aside a part of your income as savings and investments, aiding in wealth creation.

3. Manage Debt

As a salaried employee, you should manage your debts carefully. Poor debt management can lead to financial distress. To avoid such situations, you should practice making consistent repayments and limit credit utilisation. This strategic approach helps you to maintain a healthy debt-to-income ratio and enhance your creditworthiness.

4. Save and Invest

One of the most effective financial planning tips for salaried employees is to save and invest your hard-earned money. Setting aside a part of your income and investing it in fixed deposits (FDs), mutual funds (MFs) or SIPs (Systematic investment plans) can protect you from economic uncertainties. Saving and investing can help in achieving your goals.

5. Plan your Retirement

To enjoy a peaceful life after years of working, you should keep aside a part of your income and invest it in retirement funds. Making such smart investments in your early in your age ensures complete financial freedom post-retirement.

5 Financial Planning Benefits of a Personal Loan

Setting personal financial goals and achieving them with the help of loans is one of the choicest options among people. It can be a game changer for salaried employees who seek financial flexibility and convenience for their monetary needs without dipping into savings.

The following 5 points highlight the benefits a salaried person can reap by availing a Personal Loan:

1. You will have the financial flexibility to manage unforeseen expenses with convenience.
2. You can finance your significant life events without any budget constraint or fear of evaporating your savings.
3. You will not have to collateralise your precious assets to secure a loan to cover your out-of-pocket expenses.
4. You can enjoy a hassle-free Personal Loan application process by just submitting minimal documents.
5. Moreover, you can also enjoy attractive interest rates with convenient repayment facilities from leading financial institutions.

How to Apply for a Personal Loan?

Applying for a Personal Loan is quick and simple and can be completed within 4-5 minutes. Follow the 3 simple steps that you can follow to apply for a Personal Loan:

Step 1: Tap on the ‘Apply Now’ button on the screen and proceed with the application form.

Step 2: Enter your details such as name, email ID, contact details, PAN number, etc.

Step 3: Next, upload the requested documents and click on the ‘Submit’ button.

What Documents are Required to Apply for a Personal Loan?

You can apply for a Personal Loan with convenience and no tedious paperwork. Submit the following minimal documents while applying for a Personal Loan:

• Identity Proof/KYC Documents: PAN card, Aadhar card, driver's license, passport or voter card.
• Address Proof: Passport, utility bills or rent agreement.
• Income Documents: Last 3 months’ salary slip.
• Financial documents: Last 3 months' bank statements.
• Employment Proof: Employee ID card or official mail ID. 

Also Read - What is Personal Loan? Things You Should Know

What CIBIL Score is Required to Apply for a Personal Loan?

A minimum CIBIL score of 700-750 is required to apply for a Personal Loan. However, it is recommended to maintain a CIBIL score of above 750. A 900 CIBIL score is an ideal score to support financial planning for salaried employees.

Also Read - What is Minimum CIBIL Score Required to Get A Personal Loan?

To Conclude

Knowing all about strategic financial planning for salaried employees helps you achieve all your financial goals. Creating an effective financial strategy starts with clearly setting your short-term and long-term monetary goals. Follow up with your budget and regularly save and invest to ensure that you are on track to fulfil your financial aspirations. 

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Personal Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply