10 Financial Planning Methods & Saving Strategies You Need to Know

In a volatile business world, meticulous financial planning not only helps a business survive but also serves as a crucial foundation for stable growth. Setting clear financial goals and building good saving habits will effectively strengthen long-term financial security.

This article will guide you through 10 actionable money-saving methods, along with financial management strategies that will help propel your business towards sustainable growth, even during challenging economic conditions. It also introduces comprehensive tools and financial management aids suitable for businesses of all sizes. 

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Article Table of Contents

•   Does financial planning differ across life stages?
•   Easy ways to plan your finances and save daily
•   KGP: Easy, Convenient, and Comprehensive Business Financial Planning
•   Financial Planning for Your Business and Enhancing the Payment Experience with KGP

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Does financial planning differ across life stages?

Financial planning varies across different life stages due to distinct differences in income, goals, and financial obligations, as follows:

•   Student Age: This is the initial period for laying the foundation of money management habits. The primary income often comes from parents or supplementary income from part-time jobs. Financial planning at this stage should focus on building saving discipline, clearly proportioning money, practicing income-expense accounting, and initiating regular saving habits.
•   Working Age: This is a period of building financial stability. Primary income comes from salaries, profits from personal businesses, or investments. Emphasis should be placed on building an emergency fund, managing debt, generating supplementary income, and starting long-term investments to create future wealth. 
•   Retirement Age: This stage primarily relies on pension income and investment returns. Financial planning should focus on reducing portfolio risk, managing financial assets for consistent income, planning for healthcare expenses, and managing assets for inheritance to heirs.

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Easy ways to plan your finances and save daily

Financial planning isn't as hard as you might think. By starting correctly, you can genuinely save money. This section will introduce you to 10 easy-to-follow financial planning and saving methods that help build good financial habits, leading to a stable financial future.

1. See Finance in a New Light: The First Step to Effective Planning

Adjusting your perspective on finances is a crucial starting point for effective financial planning. For instance, instead of viewing saving as difficult or boring, see it as an investment in your future self. This shift in mindset will make you want to save more rather than feeling forced. Once your perspective changes, financial planning becomes easy and sustainable.

2. Start by Paying Attention to Your Income and Expenses

Logging income and expenses might be something many people overlook, but did you know that detailed daily income and expense tracking is a fundamental part of financial management? When you know where your money comes from and what it's spent on, you gain clear insight into your spending habits, understanding both your income sources and expenditures. This is a crucial foundation for good financial planning.

3. Save Little, But Consistently, for Big Goals

Gradual saving doesn't create pressure but builds long-term wealth. For example, many might think saving 50 baht a day is a small amount, but if you save 50 baht every day, you'll have a significant 18,250 baht saved in one year. This method helps cultivate a saving habit and fosters sustainable saving discipline.

4. Allocate Savings Immediately When You Get Paid

When your salary hits your account, instead of waiting to save from what's left after spending, you should separate your savings from your salary at the beginning of the month. This approach will help you be more disciplined with saving, better control your spending, and definitely increase your savings.

5. Separate Accounts for Serious Saving

Separating bank accounts for different purposes, such as an account for essential expenses, an emergency savings account, an investment account, and an account for specific goals, helps to systematize financial management. This allows for clear tracking of progress towards each financial goal and reduces the chance of misusing savings.

6. Create Financial Balance with the 50-30-20 Rule

Managing finances according to the 50-30-20 rule—allocating 50% for needs, 30% for wants, and 20% for saving and investing—ensures you have enough money for current expenses while also building a solid financial foundation for the future.

7. Plan Finances to Handle Unexpected Events

One purpose of financial management is to build an emergency fund. You should aim to have about 3-6 times your monthly expenses saved to cover unforeseen events such as illness, accidents, or job loss. This prevents the need to borrow money or use long-term savings in an emergency.

8. Learn Effective Debt Management

Smart debt management is part of good financial planning. You should differentiate between "good debt," such as loans for investment or education, and "bad debt," like credit card debt. Disciplined debt management helps reduce interest burden and allows you to pay off debt faster.

9. Invest Money with a Goal in Mind

Leveraging savings for investments to generate higher returns than deposit interest is a crucial strategy for wealth creation. Consistent investing helps build long-term returns. However, when managing capital, you should choose investments that align with your goals and acceptable risk level.

10. Increase Income Streams, Increase Wealth

Earning additional income beyond your primary job is a way to accelerate financial success. This could be freelance work, starting an online business, or other interesting ventures. By saving or investing these extra earnings, you increase your cash flow and reduce reliance on a single income source.

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KGP: Easy, Convenient, and Comprehensive Business Financial Planning

Financial planning is the heart of every business, and the payment acceptance experience is another factor that shouldn't be overlooked. KGP is an online payment system provider that caters to businesses of all sizes, elevating payment acceptance to be convenient, fast, and secure, meeting all comprehensive payment needs, as follows:

•   Automatic Summation and Fund Transfer, Done in One Step. KGP's Payouts & Settlement service collects and summarizes totals from all payment channels, then automatically disburses funds within a single platform. This simplifies financial planning, eliminating the need to manage each item individually.
•   Diverse Payment Channels Supporting All Business Sizes. Whether it's a small, medium, or large enterprise, KGP supports various payment methods, helping financial planning cover all income streams. 
•   Reduce Errors, Increase Accuracy. KGP's automated system frees businesses from constant manual accounting, saving time in financial planning and reducing the likelihood of transaction errors, resulting in highly accurate financial data. 
•   High Security Standards. KGP employs international standard security systems, ensuring confidence for both merchants and customers in every financial transaction. This makes financial planning and business operations smooth and secure.

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Financial Planning for Your Business and Enhancing the Payment Experience with KGP

Effective financial planning is the cornerstone of business success, whether it's income allocation, expense management, saving, or investing. All require a clear plan tailored to business goals.

Meta Pay in Messenger is a payment system that allows customers to easily purchase products from stores on Facebook Pages. Customers simply select items, chat with the store, and confirm the order, enabling sellers to close sales and receive payments instantly. It supports payments via credit/debit cards, QR Code, and Mobile Banking.

In addition to Meta Pay, KGP also provides a variety of online payment acceptance systems to meet all business needs, including Mobile Banking, Online Direct Debit (ODD), PromptPay QR, Payment Link, E-Wallet (TrueMoney Wallet), or Credit/Debit Cards. With these comprehensive services, KGP is a crucial assistant that enhances payment convenience and elevates the efficiency of your business's financial planning.

KGP, Payment. Make It Smooth.

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LinkedIn : Kasikorn Global Payment

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References

Financial planning is a tool to help prepare and lead life towards financial stability. (n.d.). Bank of Thailand. https://www.bot.or.th/th/satang-story/money-plan/planning-steps.html