Be it a diary or a digital notepad, create a list of all your financial goals over the years. This is what you want to achieve during the given timelines with the financial resources you will build. Then, bifurcate all the objectives into short-term, mid-term and long-term goals.
 

Also, list out the following questions, which will help you get a clear sense of how you want to achieve these goals. They are:
 

• What are my short-term goals between 6 months to 5 years?
• What are my mid-term goals between 5 to 10 years?
• What are my long-term goals for over 10 years?

Once you are able to know these goals, it becomes easier for you to save and invest your wealth which makes financial planning more target oriented.

When you start creating a budget for money management, it needs to be practical so that you can follow through with it. Here is what you need to allocate your financial resources for:
 

• Household expenses: rent, maintenance, utility bills.
• Healthcare expenses: dentist’s bills, check-ups, medications, first-aid supplies.
• Transportation costs: maintenance of a personal vehicle, petrol/diesel, other consumables.
• Savings for life insurance for the future protection of your family.
• Food expenses such as dining out and groceries.
• Entertainment expenses like interests, hobbies, vacations and so on.

You can also choose to list activities like dining out and entertainment expenses as a separate tab because these do not essentially happen on a daily basis. Instead, it is mainly household costs and other maintenance and transport costs that take up a chunk of the budget.
 

The total amount you get after adding all these expenses should be subtracted from the income you receive from your salary or any other monthly source of income. Then, the extra amount that remains should be saved or invested for your financial goals.

Chalk out a clear plan for your debt and taxes, as these can come in the way of your savings and investments if not carefully planned. Ensure that you are able to clear your debt on a priority basis so that it does not accumulate and affect your future financial plans. Tax planning should also be on your list so that you can understand how to save money through tax deductions on various savings and investments.

Even though you may have allocated money for savings or investments, a liquid emergency fund is purely for an emergency such as a medical contingency or a loss of income. At such times, it is best not to disrupt your savings or investments that are growing over the months. Instead, this is when you should use the accessible emergency fund, which should at least cover 6 months to 1 year of essential expenses and household needs.

Even though your retirement could be years away from today, it is important that you start planning for it soon. A lot of expenses that are currently in your life today will also continue through retirement; however, your salary will be absent. This facilitates the need for a regular income that you can use on a monthly or yearly basis. Consider inflation and all other necessary factors and ensure that this post-retirement income should at least be equal to your monthly salary, if not higher.
 

When you create a financial plan on the basis of these steps, it becomes easier for you to fulfil your goals and also protect your family in case of an unfortunate event. 

• The complete name of Tata AIA Fortune Guarantee Plus is Tata AIA Life Insurance Fortune Guarantee Plus - Non-Linked, Non-Participating, Individual Life Insurance Savings Plan (UIN: 110N158V06)
• ^*"Guaranteed Annual Income” shall be a fixed percentage of the Annualised Premium / Single Premium (excluding discount) payable in a year. Guaranteed Annual Income as per the chosen Income Frequency shall commence after maturity till the end of the Income Period, irrespective of survival of the life insured(s) during the Income Period.
• ^$Available under Regular Income with an Inbuilt Critical Illness Benefit option
• ^**Tax benefits of up to ₹46,800 u/s 80C is calculated at highest tax slab rate of 31.20% (including cess excluding surcharge) on life insurance premium paid of ₹1,50,000. Tax benefits under the policy are subject to conditions laid under Section 80C, 80D,10(10D), 115BAC and other applicable provisions of the Income Tax Act,1961. Good and Service tax and Cess if any will be charged extra as per prevailing rates. The Tax-Free income is subject to conditions specified under section 10(10D) and other applicable provisions of the Income Tax Act,1961. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.
• ^{^}Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere on this site. Please consult your own tax consultant to know the tax benefits available to you.
• ^{^^}Medical Consultation is available under eligible policies of Tata AIA Life Insurance and these services are currently being provided by Practo. Medical Consultation feature is optional. It is the customer’s sole discretion to avail Medical Consultation and to follow the advice suggested by the service provider. All medical-related dealing will be directly with the service provider and not with Tata AIA Life Insurance. It is available only for Life Assured of active policies for select products/riders. This feature can be discontinued, or service provider may be changed at any time at Tata AIA Life Insurance’s discretion. This feature is provided by a third-party service provider and Tata AIA Life Insurance shall not be liable for any liability arising due to customer opting to avail this feature.
• ⁺Return of Premium Benefit is The Total Premiums Paid (excluding loading for modal premiums and discount) by the policyholder will be payable at the end of the Income Period, irrespective of survival of the life insured(s) during the Income Period.
• The products are underwritten by Tata AIA Life Insurance Company Ltd. The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.
• For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.
• Insurance cover is available under the products.
• Please know the associated risks and the applicable charges, from your insurance agent or the Intermediary or policy document issued by the insurance company.
• Risk cover commences along with policy commencement for all lives, including minor lives.
• Buying a Life Insurance Policy is a long-term commitment. An early termination of the Policy usually involves high costs, and the Surrender Value payable may be less than the all the Premiums Paid.
• In case of non-standard lives and on submission of non-standard age proof, extra premiums will be charged as per our underwriting guidelines.
• All Premiums and interest payable under the policy are exclusive of the taxes, rider premiums, underwriting extra premiums, loading for modal premiums, if any which will be entirely borne/ paid by the Policyholder, in addition to the payment of such Premium or interest. Tata AIA Life shall have the right to claim, deduct, adjust, and recover the amount of any applicable tax or imposition, levied by any statutory or administrative body, from the benefits payable under the Policy.
• L&C/Advt/2022/Nov/2798