Top Financial Planning tips

While you create a financial planning, you should notice this tips. These tips can help you to create good financial planning tips.
Stream Income
People should be able to generate cash. They should work and do not just wait money from other people. You can work as employee or you can open a business. No matter what your jobs, you should generate money for you.
Multiple incomes is better than one income
Having multiple incomes can lift your wealth. You can still work at your office and receive the passive income from business, book, software, and others. You do not have to work hard after you can get passive income.
Avoid debt
At the time high interest rate, you should not propose debt because it can load you. The debt may decrease your income stream because you have to pay the debt first. You should also stop the credit card. Some credit card company wants to choke your neck.
Living Frugal
This is the most famous of financial tips. My nephew did not eat enough for couple month. He collect penny by penny to open a store in her house. Surely, you still eat to make your body health but do not overindulgence.
Spend less than income
Some employee who earns $ 5,000 still cannot fulfill their living cost. The employee spends their money for indulgence. He does not think about the income.
Saving
Set aside salary and paycheck to saving. Ten percent is enough for saving portion. If you have less income, you can decrease the percentage. If, on the other hand, you have so much money, you can increase the percentage.

Investment
Investment is good for your future. You may use it to for future living cost. Your money in investment will grow or multiply. You just receive the profit from the company that you invest the stock at there.

Do not put asset on one basket
It is too risky to put your money on stock basket whereas the stock is high risky investment. Invest your money to other investment such as mutual fund, ETF, precious metal, gems, and other. When the stock decline, you still get benefit from precious metal.

Emergency fund
A man supposedly has emergency fund that they can use when they have no jobs. This fund is important to support our lives. We do not have to borrow money to others or ask someone to fulfill our living costs.

Prepare for retirement
An employee should determine when he stops working. Some people prefer retire at 40 because they want to raise the business that generate more money.