Here are some relevant guidelines in planning your finances and systematically protecting and increasing your savings.

First of all, you need to assess your net worth which is the total of all your liquid and non-liquid assets and investments, from which final figure you subtract the total of all your debts and liabilities.

Once you understand the total savings, you can go ahead with financial planning as per short, medium, and long term goals.

Given your current income level and monthly expenses, factor in the cost of living expenses due to inflation and how much of your income would be required to cover your essential needs in the future. Also, try to have an approximate idea of large sums of money you would require and when you would need this.

Depending on your income, secondary income from your partner or other family members, your age, your likely career path and where you live and work, you could decide how much of your monthly earnings you wish to apportion towards investments. There are some low risk, medium risk and high-risk investments available, depending on how much you invest and the kind of returns you seek.

While it is important to build your assets by investing wisely, do remember to cover your self and your dependents for any risks by taking out life insurance.

Rather than putting all your eggs in one basket, it would be wise to spread your investments across savings accounts, gold, real estate, debt, and equity.

Financial planning requires you to compute your tax liability and invest in a manner that gives you the maximum tax breaks under the sections legally permitted.

Also, review the status of all your investments at intervals, so that you know if you need to redirect your money towards other investment options.

Lastly, do not be misled by spurious claims of agents who promise you quick money. Investments need to go be made carefully using one’s discretion. You can seek the advice of a professional investment consultant who will guide your financial planning towards optimizing your benefits.