Financial Advise for 2018

Financial Tips For 2018:

1. Avoid buying property on loans as it eats most of your earnings unless you have a clear plan for its repayment. It's important to monitor cash flow. Though, the house will be your asset, your liability will be much more.

2. Start a SIP at a very young age. *Try to save atleast 15–25 % of your earnings.*

3. Avoid buying a car *unless you use it everyday.*
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4. *Do not let this sentence scare you. “Mutual fund investment are subject to market risk. Please read the offer documents carefully before investing”.* Most people avoid investing in mutual funds just because of this one warning. *Yes, there is a market risk, but look at the history and growth of mutual funds.*

5. Try having a simple wedding.

6. Atleast 20% of your wealth should be liquid so you can utilize it when necessary.

7. *Considering inflation, you are actually losing money if it is in savings bank account. Do not keep huge money in savings bank account.*

8. *If you invest in stocks, pay due attention.*

9. If you invest in stocks have a separate account for delivery investment and Intraday investment. It is easy to monitor this way and also makes tax calculation easy

10. *Do not have a belief that property and car make you rich. Its what you save and invest, that is important.*

11. *Never invest in insurance for returns. Insurance is not an investment option. It is a risk management tool.*

12. Never use credit cards for lavish spending. *Use credit cards intelligently and for needs not for wants.*

13. *Cancel all credit cards before you die.* Or inform family about all your accounts, credit cards, loans and saving now itself.  Even a small residue will cost your family much.

14. Invest on yourself and then on other investments.

15. *Always try to balance your earnings with your savings first, then on  spending and loans.* Never take unnecessary loans. Always have reserve and utilise them and unless no other go never take loan.

16. Always have a plan for future events on your career, life, spending and finance.

17. *Always have a reserve on your savings for contingency and urgent situations.*

18. Your personal life and health are the most important investment. Do have a regular health check and do healthy workout every day. Stay healthy and live happily.

19. Always remember death can come anytime.....so please *do buy adequate term Insurance if you have dependents.*

20. Prepare a Will. It may avoid unnecessary fights after you die.

Allocation of income in your life

Hi friend send you simple concept for new year resolution, If possible follow it in 2017.

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
3. 30% of your income must be SAVED for your future LIVING.
4. 10% of your income must be spared for entertainments, vacations………..
5. 6 moth monthly income must be available for emergency fund { LIQUID FUND }, it can be CASH or cashable investments
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 age 45 years not supposed to enter into any BIG LIABILITIES [ Higher education of children and wedding of children will happen around 45 to 50 only ]
9. Joint account is compulsory @ 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
12. Only in insurance policy, Claims payable to Nominee. In other financial instruments legal heirs certificate is must to get back the settlement
13. 2 months salary must be parked on LIFE INSURANCE POLICY [ it’s a universal thumb rule on insurance ]
14. Don’t take any financial investment decisions by EMOTIONALLY
15. MEDICLAIM is must [ in spite of Group mediclaim coverage given at office [ After retirement there is no mediclaim coverage. After 50 years its very tough 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 investments.
19. All financial documents must be kept safely.
20. Financial investments must be followed through personal financial advisor.
21. Review your financial port folio by every three month.

Make advance plan today and continue from tomorrow with 3rd day of 2017. All the best.
Compiled by :
Dr. Hitesh Karia.