Multiply India - Information on Financial Planning

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How Do I Begin Financial Planning?

Make a budget

Understand your monthly income and expenses to find out where you can cut back and save more.

What is budgeting?

Budgeting is about observing your monthly income and expenses to understand where you may be overspending.

Doing this regularly is very important to meet your savings goals.

What is budgeting?

Let us ask Mariam how she makes a budget each month.

Before making a budget

How much money did I get in the previous month? (Income)
How much money did I spend on important things? (Expenditure)
Where did I spend the most money?
Will I be able to reach the financial goal I have set for myself?

Click on the link above to quickly learn and practice to make monthly budget

Before making a budget

Similarly, you can also make your own budget. Scroll down and you will find ready-to-use lists to help you with it!

Make a list of your various sources of income and how much you earn from these each month. Total the amount.

Income Source	Monthly Total
Catering	₹
Sweets Shop	₹
Rent	₹

List down all of your monthly expenses. Make a separate list for mandatory expenses and non-mandatory expenses. Total them up.

Expenses	Items	Total
	Rent	₹
	Groceries	₹
Mandatory	Utility Bills	₹
	Loans/ Insurance EMI	₹
	Gifts for family	₹
Non-mandatory	Outside food	₹
Non-mandatory	Entertainment	₹

Do you know?

Use energy-saving bulbs and appliances, rely on sunlight during daytime
Prioritise paying loan and other EMIs on time to avoid penalty
Prices of clothes go up around festivals. Buy them in advance
Recharge your phone with a prepaid pack you need

Do you know?

Financial planning is different from budgeting

Financial planning is not the same as budgeting. Budgeting is a part of financial planning.

Financial planning is different from budgeting

2. Set goals to save better

Set goals for:

Short-term
Medium-term
Long-term

Save consistently so you can achieve all these goals.

Here is an example:

	Target	Monthly Saving	Time (years)
Short-term	Buy a phone	₹700	1
Medium-term	Open a shop	₹1200	6
Long-term	Education	₹1000	10

Goals Calculator

Use the Goals Calculator to plan your finances better.

Goals Calculator

Pro Tip

For a good financial plan, you must learn to differentiate between your needs and wants.

Spend on your needs first and avoid spending on desires.

Click on the above video to understand how to differentiate between needs and wants!

Before making a budget

It helps to plan for your savings and expenses in advance. Write down your needs and separate them from your wants in a table like this:

	Short term	Long term
Needs	Rent	Retirement plan
Needs	Food	Life Insurance
Wants	Vacation	Vehicle
Wants	Fashionable items	Rebuilding home

Continue reading to know more about financial planning in the next section