The only constant in Personal Finance

Whenever we talk about personal finance, people usually go through some 5-6 items, do it and done. This is how most of the people do their work in personal finance. But the major thing which they are lacking is the change, the only constant in personal finance is change.

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Let me give you an example, a single guy gets a term insurance for Rs 5 Million, to secure his family. Now does that 5 million suffice when he have wife and 2 children, the simple answer is no. He need to do the change there and get the coverage increase. This is the change required in the personal finance domain which each one of us should know.

This is the biggest factor which people have to understand and take into account for their finance. People should give permission to themselves for that change and the costs involved in that, that's why being open to change is the best thing rather than thinking that everything is constant in personal finance.

Similarly most of thongs doesn't work the way we want, so we should give yourselves that flexibility to change that things for our better finances. Like I have taken the LIC in my Initial years, but now I am inderstanding the problem associated with it. So will be closing it or not renewing it because that change is what I needed.

There is always one such product or more which we have taken and thus it's not contributing much to our needs. And a lot of people do not want to do the change, but again if something is not working. The best thing to do is to change it by being flexible. Like you might think of increasing your savings, but at the end of the month it's not happening at all. Give yourself some months, try to be flexible and find out what percentage is working for you and what not. Start from there and try to increase it gradually.

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