FINANCIAL ADVICES ONE SHOULD MUST FOLLOW
THUMB RULES FOR FINANCIAL PLANNING.
1. 30 % of your income must be used for monthly living expenses.
2. 30% of your income must be used for Liabilities repayments, if any..
3. 30% of your income must be SAVED and INVESTED for your future LIVING.
4. 10% of your income must be spared for entertainments, vacations
5. 6 months expenses must be available for emergency fund (should be invested in LIQUID FUND, FD Etc)
6. Home loan must be registered and apply on both husband and wife name. (Both can get benefits on Home loan Tax benefits)
7. Buying second house for investment is not advisable ( _Survey reports - it will fetch you only around 3% return_)
8. After 45 years of age, not supposed to enter into any BIG LIABILITIES (Higher education of children and wedding of children will happen around 45 to 50 only, so plan now for the same.)
9. Have joint account @ Bank savings account.
10. Property must be registered on both Husband and wife name. (As per legal act – after husband first legal heir is wife, after wife it will go to children only)
11. Regular check on Nominations at all financial instruments. if not nominated, do it now..
12. Only in insurance policy, Claims payable to Nominee. In other financial instruments legal heirs certificate is must to get back the settlement
13. Must have Term Insurance to financially secure future of your dependants..
14. Don’t take any financial investment decisions EMOTIONALLY , and also Avoid last minute tax saving investment decisions, plan well in advance..
15. MEDICLAIM is must (in spite of Group mediclaim coverage given at office) (After retirement there is no mediclaim coverage, after 50-55 years of age, it's very tough and costly to enter into mediclaim)
16. For your jewelry LOCKER , Only one lakh is payable by bank, if theft or fire happen at bank. Provided insurance done.
17. Like same way Government guaranteed only one lakh for your FD also. (Fixed deposits with Banks upto Rs. 1 lakh only are backed by deposit insurance)
18. Must know all Tax implications. You cannot avoid paying tax. But you can minimize by way of tax planning and investments..
19. All financial documents must be kept safely and keep family members informed of the same..
20. Financial investments must be followed through personal financial advisor..
21. Review your portfolio at every six month..
Would you like to receive something that is not the best? Of course not.
You want and expect things and experiences that are exceptional and excellent.
In order to accomplish your goals you have to create a routine , work smart on it and repeat it because repetition creates expertise....
One day, the son of a rich man, who was an undergraduate,
approached his father and the following discussion took place.
Son: Dad, may I speak with you?
Dad : Go ahead.
Son: Among all my classmates, I am the only one without a car. It is
embarrassing.
Dad: What do you want me to do?
Son: I need a car. I don't want to feel odd
.
Dad : Do you have a particular car in mind?
Son: Yes dad (smiling)
Dad: How much?
Son: $1600
Dad: I will give you the money on one condition.
Son: What is the condition?
Dad: You will not use the money to buy a car but invest it. If you
make enough profit from the investment, you can go ahead and buy
the car.
Son: Deal Done.
Then, the father gave him a cheque of $300. The son cashed the
cheque and invested it in obedience to the verbal agreement that he
had with his father.
Some months later, the father asked the son how he was faring. The
son responded that his business was improving. The father left him.
After some months again, the father asked him about his business
again and the son told him that he is making a lot of profit from the
business.
When it was exactly a year after he gave him the money, the father
asked him to show him how far the business has gone. The son
readily agreed and the following discussion took place.
Dad: From this I can see that you have made a lot of money.
Son: Yes dad
Dad: Do you still remember our agreement?
Son: Yes
Dad: Tell me ,What is it ?
Son: We agreed that I should invest the money and buy the car from
the profit.
Dad: Why have you not bought the car?
Son: I don't need the car again. I want to invest more.
Dad:Good. You have learnt the lessons that I wanted to teach you.
You didn't really need the car, you just wanted to feel among. That
would have placed extra financial obligations on you. It wasn't an
asset then but a liability. Two, it is very important for you to invest in
your future before living like a king.
Son: Thanks dad
1. Always invest first before you start living the way you want.
2. What you see as a need now may become a want if you can take a
little time to get over your feelings.
3. Try to be able to distinguish between an asset and a liability so that what you see as an asset today will not become a liability to you tomorrow.
Identify yourself
Build yourself
Be yourself..
THUMB RULES FOR FINANCIAL PLANNING.
1. 30 % of your income must be used for monthly living expenses.
2. 30% of your income must be used for Liabilities repayments, if any..
3. 30% of your income must be SAVED and INVESTED for your future LIVING.
4. 10% of your income must be spared for entertainments, vacations
5. 6 months expenses must be available for emergency fund (should be invested in LIQUID FUND, FD Etc)
6. Home loan must be registered and apply on both husband and wife name. (Both can get benefits on Home loan Tax benefits)
7. Buying second house for investment is not advisable ( _Survey reports - it will fetch you only around 3% return_)
8. After 45 years of age, not supposed to enter into any BIG LIABILITIES (Higher education of children and wedding of children will happen around 45 to 50 only, so plan now for the same.)
9. Have joint account @ Bank savings account.
10. Property must be registered on both Husband and wife name. (As per legal act – after husband first legal heir is wife, after wife it will go to children only)
11. Regular check on Nominations at all financial instruments. if not nominated, do it now..
12. Only in insurance policy, Claims payable to Nominee. In other financial instruments legal heirs certificate is must to get back the settlement
13. Must have Term Insurance to financially secure future of your dependants..
14. Don’t take any financial investment decisions EMOTIONALLY , and also Avoid last minute tax saving investment decisions, plan well in advance..
15. MEDICLAIM is must (in spite of Group mediclaim coverage given at office) (After retirement there is no mediclaim coverage, after 50-55 years of age, it's very tough and costly to enter into mediclaim)
16. For your jewelry LOCKER , Only one lakh is payable by bank, if theft or fire happen at bank. Provided insurance done.
17. Like same way Government guaranteed only one lakh for your FD also. (Fixed deposits with Banks upto Rs. 1 lakh only are backed by deposit insurance)
18. Must know all Tax implications. You cannot avoid paying tax. But you can minimize by way of tax planning and investments..
19. All financial documents must be kept safely and keep family members informed of the same..
20. Financial investments must be followed through personal financial advisor..
21. Review your portfolio at every six month..
Would you like to receive something that is not the best? Of course not.
You want and expect things and experiences that are exceptional and excellent.
In order to accomplish your goals you have to create a routine , work smart on it and repeat it because repetition creates expertise....
ASSETS VS LIABILITIES
One day, the son of a rich man, who was an undergraduate,
approached his father and the following discussion took place.
Son: Dad, may I speak with you?
Dad : Go ahead.
Son: Among all my classmates, I am the only one without a car. It is
embarrassing.
Dad: What do you want me to do?
Son: I need a car. I don't want to feel odd
.
Dad : Do you have a particular car in mind?
Son: Yes dad (smiling)
Dad: How much?
Son: $1600
Dad: I will give you the money on one condition.
Son: What is the condition?
Dad: You will not use the money to buy a car but invest it. If you
make enough profit from the investment, you can go ahead and buy
the car.
Son: Deal Done.
Then, the father gave him a cheque of $300. The son cashed the
cheque and invested it in obedience to the verbal agreement that he
had with his father.
Some months later, the father asked the son how he was faring. The
son responded that his business was improving. The father left him.
After some months again, the father asked him about his business
again and the son told him that he is making a lot of profit from the
business.
When it was exactly a year after he gave him the money, the father
asked him to show him how far the business has gone. The son
readily agreed and the following discussion took place.
Dad: From this I can see that you have made a lot of money.
Son: Yes dad
Dad: Do you still remember our agreement?
Son: Yes
Dad: Tell me ,What is it ?
Son: We agreed that I should invest the money and buy the car from
the profit.
Dad: Why have you not bought the car?
Son: I don't need the car again. I want to invest more.
Dad:Good. You have learnt the lessons that I wanted to teach you.
You didn't really need the car, you just wanted to feel among. That
would have placed extra financial obligations on you. It wasn't an
asset then but a liability. Two, it is very important for you to invest in
your future before living like a king.
Son: Thanks dad
Morals:
1. Always invest first before you start living the way you want.
2. What you see as a need now may become a want if you can take a
little time to get over your feelings.
3. Try to be able to distinguish between an asset and a liability so that what you see as an asset today will not become a liability to you tomorrow.
 |
| In most of the cases liabilities leads to debts . KILL YOUR DEPTS FOR FINANCIAL FREEDOM |
The difference between the rich and the poor is that the rich look for assets while the poor look for liabilities.....
Build yourself
Be yourself..
Good n practical
ReplyDelete